Trade Union PDF
Trade Union PDF
Trade Union PDF
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 4. Ver. I (Apr. 2014), PP 47-53
www.iosrjournals.org
Abstract: This paper is a study of various aspects of trade union movement in India. Not much study is
available to us on the conditions of workers in Indian industries and failure of trade union to improve the same.
An attempt has been made to assess the impact of economic liberalisation policy of 1991 on trade unions in
Indian Industry. This paper also illustrates the role trade unions have played in the Indian industries and
propose their ultimate course of action. The findings of this paper are based on secondary sources of data.
Keywords: association, capital, collective bargaining, economic growth, economic liberalisation, labour, trade
union.
I. Introduction
Trade Union is an organized association of workers in a trade, group of trades, or profession, formed to
protect and further the rights and interests of its members. More broadly trade union is an organization of
workers who have come together to achieve common goals such as protecting the integrity of their trade,
achieving higher pay, increasing the number of employees an employer hires and better working conditions. The
trade union, through its leadership, bargains with the employer on behalf of union members and
negotiates labour contracts with employers. The most common purpose of these associations or unions is
maintaining or improving the conditions of their employment. This may include the negotiation of wages, work
rules, complaint procedures, rules governing hiring, firing and promotion of workers, fringe benefits, workplace
safety and policies. Trade unions have become an indispensable part of the modern corporate world.
There have been innumerable instances in history in which manuals workers have associated together
for a short time against their social superiors. However, none of these associations fall into the definition of
trade unions. The history of trade unionism commences from the beginning of eighteenth century before which
the existence of anything falling in the definition of trade union cannot be traced. Moreover, although
it is suggested that analogous associations may have existed during the Middle ages in various parts of the
continent of Europe, we have no reason to suppose that such institutions exercised any influence
whatever upon the rise and development of the Trade Union Movement of modern days. Trade unions may be
considered to have originated during industrial revolution in Europe when there was a separation of manual
worker from the means of production due to the introduction of machinery and the factory system.
The individual employee possesses very little bargaining power as compared to that of his employer. If
he is not satisfied with the wage and other conditions of employment, he can leave the job. It is not practicable
to continually resign from one job after another when he is dissatisfied. This imposes a great financial and
emotional burden upon the worker. The better course for him is to join a union that can take concerted action
against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the
employer to accept the demands of the workers for better conditions of employment. The decisions regarding
pay, work, transfer, promotion, etc. are highly subjective in nature. The personal relationships existing between
the supervisor and each of his subordinates may influence the management. Thus, there are chances of
favouritisms and discriminations. A trade union can compel the management to formulate personnel policies
that press for equality of treatment to the workers. All the labour decisions of the management are under close
scrutiny of the labour union to minimise favouritism and discrimination. The employees may join the unions
because of their belief that it is an effective way to secure adequate protection from various types of hazards and
income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement
benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.
The desire for self-expression is a fundamental human drive for most people. All of us wish to share our
feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them. A
trade union provides such a forum where the feelings, ideas and opinions of the workers could be discussed. It
can also transmit the feelings, ideas, opinions and complaints of the workers to the management. The collective
voice of the workers is heard by the management and given due consideration while taking policy decisions by
the management. Another reason for employees joining unions is that employees feel that unions can fulfil the
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Trade Union Movement in India and the aftermath of Liberalised Economic Policy of 1991
important need for adequate machinery for proper maintenance of employer-employee relations. Unions help in
betterment of industrial relations among management and workers by solving the problems peacefully.
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Trade Union Movement in India and the aftermath of Liberalised Economic Policy of 1991
to break their contracts of employment by refusing to return to work. Trade Union leaders found that they were
liable to prosecution and imprisonment for bona fide union activities and it was felt that some legislation for the
protection of trade union was necessary. In March 1921, Shri N. M. Joshi, then General Secretary of the All
India Trade Union Congress, successfully moved a resolution in the Central Legislative Assembly
recommending that Government should introduce legislation for the registration and protection of trade unions.
Opposition from employers to the adoption of such a measure was however, so great that it was not until 1926
that the Indian Trade Unions Act was passed.
Indian Trade Unions Act, 1926 summarizes all modalities pertaining to registration of trade union to
decision of trade related disputes. This act sets guidelines for both the workers and the industrialists. The Act
deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensures that
their funds are utilised properly. It gives legal and corporate status to the registered trade unions. It also seeks to
protect them from civil or criminal prosecution so that they could carry on their legitimate activities for the
benefit of the working class. The Act is applicable not only to the union of workers but also to the association of
employers. It extends to whole of India. Also, certain Acts namely, the Societies Registration Act, 1860; the Co-
operative Societies Act, 1912; and the Companies Act, 1956 shall not apply to any registered trade union, and
that the registration of any such trade union under any such Act shall be void.
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Trade Union Movement in India and the aftermath of Liberalised Economic Policy of 1991
the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (enhancement in the rate of
contribution and making default of dues a cognizable offence). Certain new laws have also been enacted like the
Contract Labour (Regulation and Abolition) Act, 1970, Limestone and Dolomite Mines Labour Welfare Fund
Act, 1972, Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund Act, 1976. Equal
Remuneration Act, 1976 and Child Labour ( Prohibition & Regulation ) Act, 1986. In the areas of wage policy
and minimum wages, employment services, vocational training, labour statistics and research and workers‟
education also, the recommendations made by the Commission have been largely taken into account in
modifying the policies, procedures and programmes of the Government. The National Labour Institute was set
up in 1972 in pursuance of the recommendations of the Commission.
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further adds workers have to be interested in productivity as the management is. The interest on work depends
upon proper inspiration from management how management can impose upon the workers work, ethics and
culture. It has been seen many entities in Indian Work scenario employ a worker for 12 to 15 hours in a day at
this era of globalisation. But in terms of wages they have not adequately been compensated. The Second Labour
Commission made recommendations on issues like separate laws for protection of highly paid jobs other than
workers, all settlement clauses to be binding on every party, labour laws to give well defined social security,
certain level of protection to managerial employees, basic, da and other perks to be included in wages, workers
not to hired as casual worker for more than three years, no permission for layoffs etc.
The basic approach of the report is to discourage trade unions from adopting confrontationist tactics. It
mentions negotiating agents and has recommended that provisions be made in the law for determining such
agents, particularly on behalf of workers. The negotiating agents will adjudicate disputes and may take the shape
of labour courts and labour relations commissions to be set up at the State and Central levels. A trade union too
can be the negotiating agent, but only if 66 per cent of the workforce endorses its authority. It also suggests that
where bilateral agreements are not possible, a third party other than the government be brought into the
adjudication process. The general tenor of the report is against strike action. It recommends the much-abhorred
system of strike ballot in the case of essential services such as water supply, medical services, sanitation,
electricity and transport in the event of an unsettled dispute between employer and employee. Strikes, as a rule,
can be called only by the recognized negotiating agent, that too only with the support of 51 per cent of the
workers in a strike ballot. The trade unions have opposed the concept of a strike ballot because it can be used by
managements to divide employees. It would also make employees vulnerable to victimisation or even
persecution by rival employees. The formation of unions will also be difficult as the Commission has
recommended that only a union that has at least 10 per cent of employees in a unit as its members would have
the right to represent the workers in various forums. The Industrial Disputes Act will be suitably amended to
incorporate this provision. In the section on workers in the unorganised sector, the report recommends, among
other things, the implementation of social security measures such as healthcare, maternity and childcare,
provident fund benefits, family benefits and post-retirement benefits. However, it does not mention the nature of
funding of the schemes, that is, whether they would be funded by the government, the employers or the already
ill-paid employees.
Objective of the report is not to strengthen the arms of labour in order to ensure that it has a legitimate
place in the mode of production and better bargaining power. The irony is that it has been envisaged in a
situation of declining work participation rates in both urban and rural areas, steady decline in the proportion of
self-employed people and an increase in the proportion of casual labour in rural areas, stagnancy in handloom
production and employment, a crisis in the plantation and coal industries and so on. The NCL report admits that
employment generation had actually fallen since the 1980s despite the growth in the economy. It also notes that
around the same period employers began to outsource production work from the unorganised sector. It is a
matter of time before the recommendations of the NCL are translated into legislation, either by amending
existing provisions or by introducing new labour laws. The worst fears of the trade unions and the working class
may come true in the months to come when ways and means to create an atmosphere that is conducive to
economic growth at the cost of labour will be devised.
The workers have been classified by the type of economic activity into broad the type of economic
activity into nine broad categories as per National Industrial Classification, 1998. Distribution of main workers
by industrial category shows that agriculture sector still employs largest number of workers. The dependence on
agriculture is brought out by the fact that of the 313 million main workers in the country, 166 million (56.6%)
has been engaged in „Agricultural and allied activities‟. This is followed by „Manufacturing Industries‟, which
employed about 42 million (13.4%). There are 31.1 million workers in the services sector forming 10 % of the
total main workers with similar number engaged in „Wholesale retail trade and repair work, Hotel and
restaurant.
Membership in thousand
Numbers of Union Submitting returns
Men Women Total
9702 7,420 2,153 9,573
The above data is based on the membership survey of the trade unions. The membership survey is
important because these figures decide the importance given to the views of various unions in deciding labour-
related policy matters and also the proportion of their representation in various bipartite and tripartite
committees related to labour issues formed by the government from time to time. The figures are of the 2001
membership survey which was published in 2008.
The total work force in India which is approximately 312 million and total membership of unions is
approximately 9.5 million. Thus less than 3 percent of the total work force in India only is member of any trade
union. Alternatively, trade unions in India bargain only for less than 3 percent of India‟s total work force.
V. Conclusions
Over the past 20 years we have witnessed unprecedented technological advances in the means of
transport and communication which has given impetus to the ongoing process of liberalisation and globalisation.
The world‟s ultimate colonisation is underway. It seems that the governments are helpless and are facilitating
industrial interests at the cost of diluting labour legislation. In the digital world, this leads to a shift of power
from governments to companies. As a result of these processes, capital is now in a position to suppress the
labour as never before. Capital is no longer interested in social and political compromises; it wants complete
predominance over labour. We are unfortunately, no longer in the era of social partnership and social peace that
existed between labour and capital. In such a context, times are hard for the trade union movement; much harder
than ever before. The challenges are even more gigantic. Trade unions are facing immense responsibilities given
the political inability to control capital.
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There is no doubt that presence of trade union in various industries increased the bargaining power of
the workers with their employers and have played pivotal role in improving the living standards of the workers
in their respective industries. However, when we see the overall picture of total work force in India the
bargaining capacity of trade unions presents a dismal picture altogether. Union Leaders are negotiating without
any velocity these days. It will no longer be enough to enable the workers to advance. We can draw inspiration
from the best practices in labour struggles. Trade unions will have to organise themselves counter-offensive,
which is necessary and urgent for a radical change. A revived, combative trade unionism represents only hope of
survival and fulfilment for the labour. Strategic campaigns, cross industry solidarity and national protest against
inhuman working conditions are steps towards reviving trade unionism and must be vigorously supported by
activists. The major task lies ahead is encouraging the emergence of a new generation of young trade unionists,
who consider trade union work to be a mission and not just a job. They must rediscover bottom-up trade
unionism and with committed activists who are willing to risk their jobs for the cause of membership. We must
not surrender to despair. We must, instead, face up to realities. In the words of Karl Marx, “Men make their own
history, but they do not make it as they please; they do not make it under self-selected circumstances, but under
circumstances existing already, given and transmitted from the past.”
References
[1]. Annual Report 2012-13 Ministry of Labour and Employment, Govt. Of India
[2]. Census of India 2001
[3]. History of Trade Unionism: By Sidney and Beatrice Webb
[4]. http://www.aituc.org
[5]. http://labourbureau.gov.in
[6]. Report of the National Commission on Labour, Government of India, Ministry of Labour and Employment and Rehabilitation, 1969
[7]. Statistical Year Book, India 2013 by Central Statistics Office of Ministry of Statistics and Programme Implementation
[8]. Trade unions in India 2008 by Labour Bureau Ministry of Labour and Employment, Govt. Of India
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