CHALLENGES FACED BY TRADE UNION WORKERS
INTRODUCTION
A trade union, as defined by the Trade Unions Act of 1926 (previously known as the Indian
Trade Unions Act), is a collective body formed with the primary purpose of regulating
relations between workers and employers, or between workers themselves, or between
employers. This definition also covers any federation of two or more trade unions. These
associations of wage-earners are established with the main aim of improving and maintaining
the conditions of their work lives.
Trade unions have become an essential part of the modern industrial system in many
countries, including India. They operate within the framework of the constitution and adhere
to globally accepted principles established by organizations like the International Labour
Organization (ILO).
This article delves into the various aspects of the history of trade unions in India, their
evolution, current relevance, legislation, and implications. It also covers other significant
dimensions, keeping in mind the requirements of both the preliminary and Main examination
of the UPSC IAS Exam
Trade unions have long been at the forefront of advocating for workers' rights, fair wages,
and improved working conditions. However, despite their pivotal role in shaping labor
relations, trade unions face a myriad of challenges in today's rapidly evolving economic
landscape. This introduction sets the stage for exploring the complexities and nuances of the
challenges confronting trade union members.
In recent years, globalization, technological advancements, and shifts in employment patterns
have reshaped the terrain upon which trade unions operate. These changes have presented
both opportunities and obstacles, forcing trade unions to adapt their strategies and navigate
new complexities to effectively represent their members.
One of the foremost challenges faced by trade union members is job insecurity. With the rise
of outsourcing, subcontracting, and precarious work arrangements, many workers find
themselves facing uncertain futures, vulnerable to layoffs and exploitation. Moreover, the
relentless march of automation and digitalization has further compounded job insecurity, as
workers grapple with the prospect of technological displacement and the need to continually
upgrade their skills to remain employable.
Anti-union practices pose another significant hurdle for trade union members. Employers,
emboldened by relaxed labor regulations and legal constraints, often resort to tactics aimed at
undermining unionization efforts and suppressing workers' collective bargaining power.
Intimidation, retaliation against union activists, and legal maneuvers to stifle unionization are
among the tactics employed, creating a hostile environment for workers seeking to organize.
Wage stagnation and income inequality are persistent challenges confronting trade union
members. Despite overall economic growth, many workers find their wages failing to keep
pace with the rising cost of living. Income inequality has widened, with a disproportionate
share of wealth accruing to corporate elites while workers struggle to make ends meet. In this
climate, trade unions play a critical role in advocating for fair wages and equitable
distribution of wealth through collective bargaining and political action.
Globalization has transformed the nature of work, presenting both opportunities and
challenges for trade union members. Supply chains spanning continents have reshaped
production networks, leading to outsourcing, offshoring, and labor rights violations in global
production sites. Trade unions must grapple with the complexities of global supply chains,
seeking to ensure that workers' rights are upheld across borders and advocating for fair and
ethical labor practices.
In light of these challenges, trade unions face a pivotal moment in their history. Adapting to
the realities of the modern economy while upholding their core principles of solidarity,
collective action, and social justice is essential for trade unions to remain relevant and
effective in representing the interests of their members. This exploration of the challenges
facing trade union members seeks to shed light on the complexities of contemporary labor
relations and the ongoing struggle for workers' rights in the 21st century.
The Role and Need for Trade Unions
o Trade unions represent collective stands and the power of collective bargaining,
which are crucial for the growth of a stable working population across numerous
economies.
o They have also contributed to workers securing better wages, job security, improved
working conditions, and a more equitable share of the wealth they create.
o Trade unions provide continuity and support to stated policy, lending stability to
industrial production, and protecting the interests of both workers and investors or
industrialists.
o The right to form a trade union is guaranteed as a fundamental right under Article 19
(1) (c) of the Indian Constitution.
Tracing the History of Labour Unions in India
o The emergence of trade unions was a response to the needs of the time. They were
formed to protect and secure the interests of the industrial worker and to present their
collective demands and grievances. This became particularly necessary in the second
half of the nineteenth century, with the establishment of industries.
o The first trade union in India was formed in Bombay after the establishment of textile
mills in the 1850s, followed by the formation of trade unions in Calcutta in 1854 with
the establishment of Jute Mills.
o The first factory commission set up in 1879 studied the problems of industrial
workers. The first trade union under the leadership of Narayan Meghji Lokhande, the
‘Bombay Millhands Association’, was founded in 1884.
o In 1891, The Indian Factory Act was passed. Some other notable Trade unions
include the Ahmedabad Weavers (1895), Jute Mills, Calcutta (1896), and Bombay
Mill Workers (1897) Union.
Characteristics of Early Trade Unions and Their Leadership
o Early trade union leaders were Social Reformers and Nationalists with political
inclinations.
o Their approaches were welfare-centric, focusing more on the rights of the workers.
o These unions had a limited presence, mainly in the regions of industrial hubs, and
were absent across the country.
o Since the movement was in its nascent stage, it was difficult to identify concerted
goals or long-term targets.
The First Organised Trade Union Era-1918 and Beyond
o The first organized Trade Union in India, the Madras Labour Union, was established
in 1918.
o The First World War, increased communication, and better awareness of global
players contributed to the development of the trade union movement.
o Some important Unions were the Ahmedabad Textile Labour Association (1917), All
India Postal and RMS Association.
o The All India Trade Union Congress, the oldest trade union federation, was founded
in 1920, under the leadership of Lala Lajpat Rai, Joseph Baptista, N.M Joshi, and
Diwan Chaman Lall.
Factors That Fuelled the Growth of the Trade Union Movement
o The high cost of basic commodities and difficult living conditions, especially as a
result of the war, affected workers and fueled the growth of the movement.
o The emergence of the Home Rule League, Gandhian ideals, leadership, and prevailing
conditions prompted leaders of the day to work to address workers’ plight.
o Events at the end of the First World War, the establishment of the International
Labour Organization (ILO), and the Russian Revolution also contributed to the
growth of the movement.
Post-1925 Era: The Emergence of Divergent Ideologies
o This era saw an increase in militancy and revolutionary activities among trade unions.
o Leadership emerged to moderate the movement and bring it back to the mainstream.
o The All India Trade Union Congress (AITUC) broke away, forming factions –
National Trade Union Federation (NTUF) and All India Red Trade Union Congress
(AIRTUC), which later merged again.
o Legislative measures such as the Trade Unions Act, of 1926, and the Trade Disputes
Act, of 1929, propelled the growth of trade union associations, allowing rights in
exchange for obligations.
Post-1935 Era: Trade Unions Join the National Narrative
o This era witnessed enhanced unity among different trade unions.
o The political influence of the Indian National Congress across different states led to
the growth and emergence of multiple organizations in the trade union sphere.
o Legislative measures were adopted to confer power and recognition to different trade
unions.
o The government strived to promote industry while protecting the interest of the
workers.
o This era is also marked by resentment among unions for the suppression of their
protests by the state machinery, instead of reconciliation and workable resolution.
World War II and a New Era in the Labour Movement
o The World War II further deteriorated the standard of living, coupled with
skyrocketing inflation of common commodities.
o The war affected the common populace very adversely, which made it come out
stronger.
o The introduction of the Industrial Employment Act, of 1946, and the Bombay
Industrial Relations Act, of 1946, marked the emergence and further strengthening of
the trade union movements.
o The movements also lent their voice to the national struggle and identified themselves
as a crucial player in the national struggle.
The Post-Independence Era
o In the Post-Independence era, trade unions were more influenced by regional or
national political affiliations, thereby blurring their position concerning the primary
concerns of the workers.
o The Indian National Trade Union Congress was formed in 1947.
o Post-liberalization, the influence of trade unions has somewhat attenuated, coupled
with the privatization of the economy.
o Labour code and minimum wage are still some demands remaining as contentious
issues to be addressed.
o The Hind Mazdoor Sabha was formed in 1948, and the Bharatiya Mazdoor Sangh was
founded in 1955.
o The increase in the unorganized sectors of the Economy due to various reasons has
led to an increase in the membership base of the unions.
Challenges Faced by Trade Unions in the Post-Independence Era
o Limited financial resources due to the low membership fee, limiting their ability to
mobilize financial resources.
o With concentration in large cities and dominated by organized sectors, rural
agricultural labor is left out and not adequately given space.
o Although the unions have registered membership growth, large numbers of laborers
are not part of the groups, thereby weakening their collective bargaining potential.
o Dwindling support base among the public post-liberalization.
o Weak organizational structure and lack of clarity to deal with different labor groups.
o Political ambitions and priorities of the leadership have trumped the concerns and
interests of the laborers, further weakening the bargaining power.
o Weakening of bargaining power due to similar fractions and easy influence by groups
with a counter-narrative, driving a wedge among labor unions' unity.
o Lack of unity among labor unions, and resultant competition for better share, which
further puts them in disadvantage putting forth their demands.
o The question of recognition of the unions, where a favorable group may be given
priority, sidelining the genuine or major groups.
Importance of Labour Unions in the Post-Liberalization Era
o Trade unions play an essential role in safeguarding the collective interest of the
laborers, drawing a fine balance with the investor’s interests.
o They play a crucial role in ensuring the adoption of ethical business practices.
o Trade unions are instrumental in garnering and mobilizing support for the interests of
the labor class.
o They help in strengthening the collective bargaining capacity of the labor class.
Recent Reforms: The Introduction of Labour Codes
Labor is a subject in the Concurrent List of the Constitution of India. The government has
recently proposed new labor codes, which aim to unify various bills and provisions. These
codes are broadly categorized into four different areas, dealing with Occupational Safety,
Health and Working Conditions, Social security, Industrial Relations, and Wages. These four
labor codes will rationalize 44 central labor laws.
Conclusion
The history of trade unionism in India has evolved to cater to the needs and challenges faced
by the labor force over time. Trade unions have played a significant role in the development
of the nation, especially in the industrial and social sectors. A robust trade union is essential
to counter the rising disparity of incomes, maintain labor standards, secure the interests of the
laborers, and promote the adoption of ethical business practices.
While reforms to various labor laws were long overdue, it is crucial to strike a balance
between labor welfare and the interests of investors for faster growth. These far-reaching
labor laws require greater deliberation among all stakeholders to shape further policy
directions. This will propel India towards a world-class manufacturing-led growth trajectory,
making India truly self-reliant and revitalizing the Make in India program.
