The Sveriges Riksbank Prize in

Economic
Sciences in Memory of Alfred Nobel
2015

Angus Deaton
The Sveriges Riksbank Prize in Economic Sciences in Memory
of Alfred Nobel 2015 was awarded to Angus Deaton
"for his analysis of consumption, poverty, and welfare" .
 The institution of Trade union, though comparatively
recent inorigin has become a powerful force by way of
its direct influence in the social and economic life of
industrial workers .

Sydney and Beatrice Webb considered Trade Unionism

to be "the extension of theprinciple of democracy in the
sphere of industry".

Unfortunately this broad idea is weakened (damaged)

by causes not too far to seek; multiplicity of unions,
placing political ideology before economic interests and
to some extent insufficient leadership.
 Since theconflict, or co-operation between workers
and management is greatly influenced by the nature
of the workers organization and the processes that
encourage their structure, study of Trade Union
becomes a critical topic in the industrial relations
area.

In this chapter an effort is made to study the origin

of Trade Unions in India
Background study of the Trade Union Movement
in India.

Meaning of Trade Union Movement in India

Growth of the Trade Union Movement

Beneficent role (Functions of the Union)

Weakness of the trade Union

Suggestions for improvement

 The predominance ofemployer-employee relation
is associated with rise of modern industry and
large production units . The great transformation
which lead in theindustrial society began in Great
Britain in the latter half of the 18 th century . During
the 19th century, the movement spread to a dozen
of the other countries.

Acceleratedindustrial development began in

around 1830 in France, Belgium and United States,
1850 in Germany, 1870 in Sweden, Japan, 1890 in
Canada and Russia.
 The labour movement in India is about fourteen
decades old, since it may be traced from 1860’s. Early
years of movement were generally led by
philanthropists and social reformer, who organized
workers and protected them against inhuman working
conditions.
The early years of labour movement were often full of
difficulties. Strike committees arose calling
themselves trade unions and demanding the privileges
of trade unions without any means of discharging
responsibilities thereof.
The position of trade union has considerably improved
since then.
 Trade union is an outcome of the factory system. It is based on
labour philosophy – “united we stand, divided we fall”. Industrial
revolution in India has changed the traditional outlook in the
labour management relationship.

With the introduction of the modern factory system, personal

relationship between employer and employee disappeared and
has given rise to many social and economic evils which made it
imperative on the part of the workers to devise an effective
means to contact employers and to bargain with them.
Formation of trade unions has provided an ideal solution.

Considering that the Preamble to the Constitution of the

International Labour Organization (ILO) declares “recognition of
the principle of freedom of association” to be a means of
improving conditions of labour and of establishing peace.
 Over the years in the world various
theories have been propounded to justify
and explain activities of the trade union.
Robert hoxie’s theory
Political revolutionary theory of trade
Unionism – Marx’s theory
Democratic-socialist trade unionism of
webbs
Gandhian Trade Unionism
 According toChambers’s twentieth century dic.
“Trade Union is an organized association of
workers of an industry for the protection of their
common interests”.

According to sec.2 (h) of Trade Unions Act

1926 “Trade union means any combination,
whether temporary or permanent, formed
primarily for the purpose of regulating the
relations between workmen and employers, or
between workmen and workmen, or between
employers and employers, or for imposing
restrictive conditions on the conduct of any
trade or business, and includes any federation
of two or more trade unions”.
 They strive for achieving higher wages and better
conditions for the members.
 They not only minimize the helplessness of the
individual workers by making them stand collectively
and increasing their battle power through collective
bargaining but also protect their member against
discrimination or injustice of the employers.
 They provide the worker self confidence and a feeling
that they are not simply a log in the machine. They
imbibe a spirit of sincerity and discipline in the workers.
 They also take up welfare measures for improving the
morale of the workers.
 They help in raising the status of workers as partners of
Industry and as citizens of the society.
 Recently, the Lok Sabha and Rajya Sabha passed three
Labour Code which have, in one foul Swoop, changed
the face of labour legislation as we know it. Last year,
the Government had decided to compress 29 existing
Labour Acts into four codes,
◦ The Industrial Relations Code (replacing 3 Acts)
◦ The Occupational Safety, Health and Working Conditions
Code (replacing a colossal 13 Acts)
◦ The Social Security Code (replacing 9 Acts) &
◦ The Wage Code (replacing 4 Acts).
 The Industrial Relations Code replaces the real
“mothers” of Indian industrial legislation- the
Industrial Disputes Act, 1947, Trade Unions
Act-1926, and the Industrial Employment
(Standing orders) Act-1946. These three Acts lay
down the overall substantive rights of workers and
trade unions in India.
Labour when organized into trade unions can do a lot to
improve its own conditions. Among the various functions
of unions one may mention the following types…

First, described as militant or fighting function ,

concerns bargaining with the employer in respect of
the betterment of the working conditions. The fight
through offer of negotiations, threat of strike, actual
strike, etc, is mounted secure higher wages, reduced
hours of work, share in profits, etc.
 Second, called fraternal function , includes such
activities as extending help to workers in times
of need, such as during illness, litigation, etc.
facilities for improving their efficiency, spreading
education etc.
Third, called political function and applicable to
some countries like England, is that the trade
unions fight elections to capture political power.
In Indian organized labour force has not worked
independently to functions as the Labour Party in
England does.Most of the trade unions in India
functions as labour-wings of political parties in
the country.
1. Greater Bargaining Power
("minimum wage" means the wage fixed
under section 6;)
2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Sense of Belongingness
6. Platform for self expression
7. Betterment of relationships
1.All India Trade Union Congress (AITUC)
2.Bharatiya Mazdoor Sangh (BMS)
3.Centre of Indian Trade Unions (CITU)
4.Hind Mazdoor Kisan Panchayat (HMKP)
5.Hind Mazdoor Sabha (HMS)
6.Indian Federation of Free Trade Unions (IFFTU)
7.Indian National Trade Union Congress (INTUC)
8.National Front of Indian Trade Unions (NFITU)
9.National Labor Organization (NLO)
10.Trade Unions Co-ordination Centre (TUCC)
11.United Trade Union Congress (UTUC) and
12.United Trade Union Congress -
Lenin Sarani(UTUC - LS)
An Act of provide for the registration of Trade Unions and in certain
respects to define the law relating to registered Trade Unions.

The first sentence of the Act is the preamble or long title of the
enactment and it gives the objects of enacting the Act.

The first object of this enactment is to provide for the registration of

Trade Unions. Though Unions were in existence during the latter half
of the 19th century, they were not stable and also there was no law for
their registration.

The International Labour Organization (I.L.O) was established by the

Versailles Peace Treaty at the end of the First World War. India was
one of the signatories to this treaty and also a founder-member of the
I.L.O.

The ILO is a tripartite body consisting of three interest, namely, the

Governments who were signatories to the Charter, representatives of
 The existence of trade unions in the country is legalized
under theIndian Trade Union Act of 1926 . It provides legal
activities of Unions registered under it.
recognition to the
This piece of legislation discusses on the registered
certain rights and privileges , besides putting their
unions
working under certain duties or responsibilities.

The law relating to theregistration and protection of the trade

unions is contained in the Trade Unions Act, 1926 which came
into force with effect from 1 st June 1927. The act extends to the
whole of India except the state of Jammu and Kashmir.

In Common parlance, Trade Union means an association of

workers in one or more occupations. Its object is the protection
and promotion of the interest of the working class.
 The Trade Unions Act, 1926 was enacted with a
view to encourage the formation of permanent and
stable trade unions and to protect their members
from certain civil and criminal liabilities. The
registration of a trade union is, however, not proof
of its existence. The society’s registration
act-1960, Co-operative Societies Act-1912, and the
Companies Act-1956, do not apply to trade unions
and registration thereof under any of these Act is
oid ab initio.
 The past includes protection from action for certain
activities inrespect of genuine trade union activities and
protection from civil suits under similar conditions.

The responsibilities pertain to such matters as earning

expenditure only on specified items, submission of annual
returns in prescribed form, auditing of accounts, etc.

(Protection: that benefit or safety which the government

affords to the citizens).
 Section-17 confers immunity from liability in the case of
criminal conspiracy under section 120-B of IPC,
committed by an office bearer or a member.
However, this immunity is partial in the sense that it is
available only with respect to the legal agreements
created by the members for the furtherance of valid
objects of a trade union as described in section 15 of
the act.
Registered Trade Unions have certain rights to do in
furtherance of their trade disputes such as calling for
strike, persuading members to protest, distributing
pamphlets, making speeches to garner support for the
union or educate the employees about any unjust act of
the management etc.
 The entire period of the growth trade unionism up till now is
conveniently divided into three periods and development of trade
union can be divided into Pre – post independents.
The number of trade unions has gone up and its
membership and funds have increased. The development
during the span of about one hundred and forty-five years
may be considered broadly under the following six period: i)
pre-1918 ii) 1918-24 (iii) 1925-34, iv) 1935-38, (v) 1939-46
bd (vi) 1947 and since.
Section 2 (K) of the industrial disputes act 1947, defines
“industrial dispute”

First period 1875-1918

Second period 1918-1947
Third period 1947 till date
First period
1875-1918
 Period Prior to First World War (1875-1917)
TheTrade Union Movement in our country has
passed through the similar conditions after the
beginning of factory system in India.
It would be desirable to know how thefactory
system came in our country, with all its evils and
problems.
The firstCotton Mill in India was established in
1851 in Bombay and the first Jute Mill in 1855 in
Bengal. This is the beginning of the modern
factory system in India.
Period Prior to First World War (1875-1917)

This was the beginning of themodern factory

system in India. After1851 and 1855, the number
of factories began to increase both in Bombay and
Bengal.

The modern factory system brought in its wake

employment of women and children, long and
excessively hours of work , undermining of morality,
lack of education, poor housing and an excessively
high death rate.
C.S.Venkata Ratman: Impact of New Economic Policy on the Role of Trade
Unions, Indian Journal of Industrial Relations Vol, 29, No.1 (July., 1993),
pp.55-78.
Prof.S.N.Dhyani has observed that the year 1875
was landmark in the history of trade union
movement. For thefirst time in India factory
Period Prior to First World War (1875-1917)

Thesecretary of state for India was kept informed of

all these evils of the modern factory system and the
first factory commission wasappointed in Bombay
in the years 1875 and the first Factories Act was
passed in 1881.

The 1881 act proved highly insufficient and its

provisions regarding protectionto child labour and
absence of any regulation for women labour were
highly disappointing.

Consequently, another factoryCommission was

appointed in 1884. Mr.Lokhandey organized a
conference of workers inBombay and sketched up a
Memorandum signed by some 5,300 workers to be
presented to the factory commission.
 Period Prior to First World War (1875-1917)

This was the beginning of modernTrade Union

Movement in India . The Memorandum submitted and
adopted at this weekly rest, half an hour’s recess,
compensation for disablement, payment of wages not
later than 15 th of the month following the one in which
they were earned, limitation on hours of work from 6:30
A.M. till sun-set.

Great Britain which began during 18 th century as a

consequence ofdecay of the modern medieval system
of structuring wage system . It can be said that in India
the trade union movement had begun very late
the
because of slow progress of industrialization,
problems arising out of illiteracy and poverty of the
workers, their migratory habits and predominantly all
the workers depending on Agriculture only.
Period Prior to First World War (1875-1917)

The setting up oflarge scale industrial units created

conditions of wide spread of machinery , the
establishment of new lines of production, the changes
in working and living environment of workers and
concentration of industries in large towns, all of which
introduced a new class of workers who were
dependent on wage for their livelihood.

Consequently,the factory commission was constituted

in the years 1875 , to enquire into the workers’
problems and even by the end of the decade
1881-1890 the Govt conducted nothing in the nature of
minimum wage was found. (the Union cabinet has approved
the wage code bill, which raised the national minimum wage by $2 to $
178 per day, despite an internal labour ministry committee
recommending a much higher amount of Rs. 375).
 However, during this period many important
commissions were constituted in this regard
Bombay Factory Commission 1884, the
such as
Indian Factory Labour Commission 1890. the
Royal Commission on labour 1902 and the
Factory Labour Commission 1908 .

In1884 N.M Lokhandey convened a meeting of

factory workers and a memorandum was
submitted to the factory commission
demarcating limitations of hours , a weekly rest
compensation for
day, noon time recess and
injuries .
Period Prior to First World War (1875-1917)

TheBombay Mill Hands Association was formed and

organized in the year1890, N.M.Lokhandey as its
Chairman. The News paper calledDheena Bandu
Started focusing the problems of the workers.

It is very important to note here that during this period

many other associations, such asIntegrated Society of
Railway Servants of India and Burma (1897), Printers
Union (1904), the Bombay Postal Union (1907). The
Kamgar Hitwardhak Sabha (1909), the Press
Employees Association were established.

All those associations wereestablished in Bombay

only . Many efforts were made by someeminent social
workers like, Sorabji Bengali, Lokhandey to organize the
workers focusing injustice done to the large number of
working people.
Period Prior to First World War (1875-1917)

N.M.Lokhandey was supported by a very eminent Parsi

Philanthropist and social worker byname Sorabji
Bengali.

It is a significant act that in the year 1890, the first

labour union was formed calledBombay Mill Hands
Association . However, it was not a trade union in real
sense, because this association had no membership,
no rules and regulations and no funds.

The first decade of20 th century witnessed some trickle

in28 labour activity mainly because of political factors
associated with the partition of Bengal, such a Desi
Movement and lonely sentence of Balagangadhar Tilak.
Period Prior to First World War (1875-1917)

Immediately after of thewar time conflicts in

1917 , an importantland mark in the history of
Indian trade union Movement took place, that
Ahmedabad Textile
was the establishment of
Labour Association the leadershipMahatma
of
Gandhi .

The association declared a strike making the

labour demand for higher wages, war bonus etc.
it is important to mention here that the
establishment of Ahmedabad Textiles Labour
Association was considered India’s biggest and
best labour union was closely associated with
Gandhian Philosophy and principle of trade
unionism.
Period Prior to First World War (1875-1917)

 Afterthis another union theTextiles Labour of

Madras under the leadership ofB.P.Wadia
known as the Madras Labour Union at Madras
on 27 th April, 1 918 was established Mr.B.P.
Wadia, a leader of the Indian National
Congress and a close associate of Dr.Annie
Besant inHome
the Rule Movement was
considered the earliest trade union leader in
organizing trade unions in India.

 The birth
and establishment of Madras Labour
Union gave a sense of unity for a trade union
awareness among the workers.
 During the first quarter of 20th century the
emergence of trade union freedom had become
one of the mostpowerful and challenging
problems of Indian social and economical
institutions.

Many Unions started inBombay, Madras, Punjab

and Bengal were inspired. Since 1919 the Indian
Trade Union Congress began to take interest in
trade union movement.

In thepost war period the trade union movement

got a fresh stimulus on account of economic and
social unrest.
 In theBuckingham Mill (known as B & C Mills were
textile mills run by Binny and Co in the city of
Chennai) there arose some labour problems in
October, 1920 relating to the passing over of the
claim of a side jobber for the promotion.

Later in 1921, the Indian Legislative Assembly

adopted a resolution requesting a legislation action
for registration of trade union and for their protection
from civil action.

The first and the foremost was the new expansion of

national movement. Leaders likeB.P. Wadia,
Lokmanya Tilak, Annie Besant, Mahatma Gandhi
and Lala Lajpati Rai and many others.
 The establishment of theInternational Labour
Organization in 1919 , the interest for the national
movement and formation of the organizations of
trade unions and founding of AITUC in 1920 helped
much in the process and the result was the
enactment of Trade
the Union’s Act 1926.

Trade Union’s Act 1926 is a very important land mark

inthe history of trade union movement and trade
union freedoms in India developed due to the efforts
and sacrifices of many trade union leaders.
(a) The Pre Independence period :

(b) The Post Independence period

The Pre Independence period

The period prior to1930 was characterized mainly by

the formation of associations of merchants in the form
of Chambers of Commerce.

The combined effect offactors like establishment of

ILO, the passing of the Trade Unions Act, 1926 and the
Trade Disputes Act, 1929 and Industrial Dispute Act,
1947 motivated and it was the realization on the part
of the individual employers, of the necessity for greater
cooperation and coordination of workers’
organizations and employers organizations led for
collective interest.
 The period between1931 and 1946 was
considered to be an important period when the
employer organizations played an important role in
tackling the problems of the workers.

OrganizingChambers of Commerce and Industrial

Associations for dealing with a variety of problems
connected with the labour matters too.

TheAll India Organization of Industrial Employers

(AIOIE) and theEmployers Federation of India (EFI)
came intoexistence in 1933 to understand and
deal with problems of industrial labour in a
concerted manner.
 TheAll–India Manufacturers Organization (AIMO)
followed in 1941 . The establishment of these
organizations was again as in the case of the
workers union.

It is to be observed that theGovernment of India

Act, 1935 made a provision for the
representation of employers and labour in
legislative bodies .

The Constituents of the“the All – India

Organization of Industrial employers (AIOE)” and
“The Employers Federation of India (EFI)” thus
got an opportunity to be representative in the
central and provincial legislatures.
 The creation of Labour Department in theCentral
Government and the Constitution of tripartite bodies
likeIndian
“ Labour Conference ” and theLabour
“
Standing Committee ” during the years of the Second
World War helped to develop further these activities
within the local associations and federations.
 The
Post- Independence
Period
 This isvery important period after the
Independence of the people who suffered and
hand of the Britishers for
struggled a lot in the
achieving their freedoms and trade rights.

Theperiod since Independence witnessed the

growth of planning, industrial activity, extension of
democratic tool, passing of several labour laws
and a growing trade union movement, all of which
acted as a division for the strengthening and the
expansion on employers organizations.
 The setting up ofWage Boards on industry wise basis ,
theIndustrial Committees at Central and state levels ,
development of collective bargaining at industry level
their growth. Jute,
in certain regions have helped
Cotton Textiles, Engineering, Tea, Sugar, Cement,
Paper, Chemicals are important industries which
ave associations at All–India level with their
branches in areas and states.
 In May, 1947 the INTUC with seasoned
trade union leaders likeSri Kandhu Bhai
Desai, Sri Hariharnath Sastry and Sri
Guljarilal Nanda , was formed based on
Gandhian
ideologically on the
Philosophy of the Non– Violence and
resolution of disputes by peaceful
means.
 In the year1949 another Federation called theUnited
Trade Union Congress (UTUC) was formed. In the year
1953, the Jansangh formed its own wing in the labour
front called the Bharatiya Mazdur Sangh (BMS) based
on Hindu ideology.

All–India Trade Union Congress (AITUC):The First

National Trade Union formed inIndia was the AITUC
and it was established in 1920 . The AITUC has its
foundation and base inWest Bengal, Kerala and Andhra
Pradesh. The AITUC has the support Steel,
in Defense,
Engineering, Communication, Industries, etc., and also
in White Collor Unions.

It was attended by such first rank political leaders as

Motilal Nehru, M.A Jinnae, Mrs. Annie Besant and
Vallabhai Patel and Col. Wedgewood on behalf of the
British Trade Union Congress. The first president was
Lala Lajpat Rai.
  IndianNational Trade Union Congress (INTUC):
In India INTUC is the largest National
“ Trade
Union Central Organization” and it was formed
Nationalists and Gandhian labour
by the group of
leaders who were then associated with
Hindustan Mazdur Sevak Sangh support in
Textiles, Mining and Heavy Industry and also in
the Plantations.
  HindMazdoor Sabha (HMS): Following the
establishment ofINTUC,a new Central Trade Union
Organizations was established on 24 th December,
1948 as Hindu Mazdoor Sabha .

The HMS is close to theLohia and the Praja

Socialist Party and now gets support from the
Janata Party which formed theGovernment in
Center in 1977 .

The HMS is particularly strong inMaharashtra,

West Bengal, UTTAR-PRADESH and Karnataka . Its
Railways, Iron and Steel,
strategic industries are
Ports and Docks, Printing and Government Postal
Services . This organization was strongly supported
Jayaprakash Narayan.
by late
 United Trade Union Congress (UTUC): TheUnited
Trade Union Congress wasestablished in Calcutta
(now Kolkata) in April, 1949 as an off-shoot of the
Revolutionary Socialist Party of India .

TheUTUC in fact has no direct connection with

any political party but ideologically follows the
policies of the Communist Party (Leninist) and
thus following the leftist ideals
 Bharatiya Mazdur Sangh (BMS): BMS was
established in the year 1955 under the leadership
Mr. D.B. Thengdi. The BMS has links with the
of
Bharatiya Jana Sangh presently known as Bharatiya
Janata Party .

The BMS inculcates thespirit of service,

cooperation and dutifulness in the minds of the
workers and generates a sense of responsibility
towards the country
 Centre of Indian Trade Unions (CITU): As a
consequence of some ideological differences within
the communist movement the left wing within the
AITUC separated and constituted its own central
federations known Centre
as of Indian Trade Unions in
he year 1970 under the Presidentship of Sri B.T.
anadev.

The CITU organization was established under the

auspicious of theCommunist Party of India (Marxist).
 TheGajendragadkar Commission in 1969, and
the Ravindra Varma Commission in June 2002 ,
in their recommendations has given the clear
findings, that statutory recognition of the
bargaining agent is a crucial issue in the
Industrial Relations Agenda of India, and the
National Trade Union centers , now should sit
together and develop agreement on this in the
country’s interests and in their own interests.
 The country has to march forward and achieve
Industrial growth and Economic growth , in the
presenthighly competitive environment in the
global economy.

Code of Discipline – 1958 At the historic 15th

Indian Labour Conference , held atNainital , under
Chairmanship of late Guljarilal Nanda , the then
the
Labour Minister of the Government of India , and a
true Gandhian, the Code of Discipline was
adopted on May 21, 1958.
 The Hon’ble Minister, whoshaped the
code, acted sincerely and honestly and
the code, really created awareness
about the need for recognition of
unions, in the bargaining field.
Existence of large
number of trade
unions with small
membership.
Limited area
Political competition
Financial weakness
Outside leadership
 Some of the major problems faced by trade unions in
India are as follows: 1. Small Size 2. Poor Finance 3.
Politicisation 4. Multiplicity of Unions 5. Lack of
Enlightened Labour Force 6. Miscellaneous Problems.
SMALL SIZE:
According to the veteran trade union leader V.V. Giri,
“the trade union movement in India is plagued by the
predominance of small sized unions”. To quote there
were 9,023 trade unions submitting returns during the
year 1992. The total membership of these unions was
57.4 lakhs, with an average membership of 632 per
union. Nearly three-fourths of the unions have a
membership of less than 500. Smallness in size of the
union implies, among other things, weakness in
bargaining power.
 2. POOR FINANCE:
Small size of unions has its direct bearing on its
financial health. Total income and total expenditure of 9,
073 trade unions with a membership of 57.4 lakhs were
Rs. 3,238 lakhs and Rs. 2,532 lakhs respectively in 1992.
The per member income and expenditure, thus, come to
Rs. 56.4 and Rs. 44.1 respectively”. These are, by all
means, very low. It is the small size of trade unions
accompanied by small subscriptions; the trade unions
cannot undertake welfare activities.
 3. Politicisation:
A serious defect of the trade union movement in
India is that the leadership has been provided by
outsiders’ especially professional politicians.
Leaders being affiliated to one or the other party,
the unions were more engrossed in toeing the
lines of their political leaders than protecting
workers’ interests.
Ironically, in many cases, the political leaders
possess little knowledge of the background of
labour problems, fundamentals of trade
unionism, the techniques of industry, and even
little general education. Naturally, unions cannot
be expected to function efficiently and on a
sound basis under the guidance of such leaders.
 4. Multiplicity of Unions:
Of late, trade unionism in India is also
characterised by multiplicity of unions based on
craft, creed and religion. This is well indicated by
the socio-political realities after the
mandalisation of polity and heightened sectarian
consciousness after the demolition of the
disputed structure of Ayodhya.
As noted earlier, the multiplicity of unions is mind-
boggling in the DTC (50), the SAIL (240) and the
Calcutta Corporations (100). The implication of
multiplicity of trade unions is that it leads to
union’s rivalry in the organization. Obviously,
multiplicity of unions contributes to
fragmentation to workers leading to small-sized
unions.
 5. Lack of Enlightened Labour Force:
The lack of an enlightened labour force capable
of manning and conducting the movement
efficiently, purposefully and effectively has been
a major problem in the development of trade
unions in the country. Lack of education, division
by race religion, language and caste, migratory
nature, lack of self consciousness, and non-
permanent class of workers have been attributed
as the causes for the lack of enlightened labour
force in India.
6. Miscellaneous Problems:
The other problems from which trade union movement has suffered
include:
(i) The majority of registered unions are independent unions as only 16,
000 units out of 50,000 registered unions are affiliated to the Central
Trade Unions (CTUs). One possible reason for this IS the educated
workers’ preference to the independent unions,
(ii) It is also found that about 90% of workers in the public sector are
unionized while in case of the private sector only 30 % workers are
unionized”. This is a World-Wide trend, not only featuring in India. But
it has a serious implication for trade union movement in India as
more and more public sector undertakings are privatized. In turn, the
trade union membership is to decline, a trend already visible by now.
(iii) Given the fast changing industrial scenario, jobs are moving from
the organized formal sector to informal sector. However, the
unorganised sector which constitutes about 90% of the total work
force does not come under the purview of the trade unions.
The Second Five-Year Plan scanned the defects of the trade union
movement in India as follows:
“Multiplicity of trade unions, political rivalries, lack of resources, disunity
in the ranks of workers etc., are some of the major weaknesses in a
number of existing unions”.
The five measures to strengthen the trade union movement in India
are as follows: 1. Maintaining Unity 2. Free from Political influence
3. Workers Education 4. Adequacy of Funds 5. Welfare Activities
for Workers.
1. Maintaining Unity:
Past experiences indicate that multiplicity of unions; political rivalries,
disunity among the ranks of workers, etc. have been in India. Unity
in the movement is, therefore, a necessity because “Unity is the
strength”.
Unity in trade unions can be stricken and maintained in different
ways:
(i) All wooers should join hands to form a single union to represent
all their demands.
(ii) All unions with different political affiliations should have one
policy, one programme, one objective and one method for the
labour movement.
 Here the role of unity among workers in the TISCO,
Jamshedpur is worth citing:
“TISCO has a reputation in the country for cordial
industrial relations which is the envy of other corporations.
There has been no strike in Jamshedpur over an industrial
dispute for more than fifty years. The Tata Workers’ Union,
which is the recognized union in Jamshedpur, has such
excellent relations with the management that when a
move was made by interested politician in 1978 to
nationalize the company, the union, on its own, made a
strong representation to the Prime Minister against such a
move:
 2. Free from Political Influence:
At present, trade union leadership is in the hands of politicians
who have more concern for their political ideologies than for the
interest of working class. This has weakened the labour
movement. Therefore, one way to strengthen the trade union
movement is the provision of leaders from the ranks of the
workers themselves.
These union leaders should be full-time paid officers of the unions
having qualities such as literate, organising capacity,
hardworking cool in temper and patience Leadership qualities
among the workers can also be developed through education
and training It is this realisation that the Asian Trade Union
College, at Kolkata is set up to tram educated young men,
particularly from the working classes, in trade unions.
 3. Workers Education:
So far trade unions have confined their attention to its members’
demands only. It is now high time for trade unions to assume
the responsibility workers a sense of discipline and
responsibility to perform their jobs satisfactorily. The workers
need to be made understand fully first their duties and
responsibilities and then their rights and privileges. Or say, the
workers need to be taught “first deserve, then desire”.
4. Adequacy of Funds:
Particularly, small-sized firms suffer from their weak financial
position. On account of poor financial resources, the workers
movements/strikes did not prolong and ended in failure
Therefore, the maintenance of strike funds by the union is a
necessity. This strike fund would be used to help workers during
strikes – as “strike pay”. This will not only strengthen the
bargaining position of the unions, but they will also get the
loyalty of the workers.
 5. Welfare Activities for Workers:
Along with efforts to improve the financial status, the trade
unions may effectively start activities such as the
provision of day schools for children, creches at work
place, and night schools for adults, reading rooms,
libraries, co-operative stores, gymnasium, etc.
It is gratifying that various labour organisations like the
Textile Labour Association, Ahmedabad; the Hindustan
Mazdoor Sewak Sangh and the INTUC have been doing
some works in this direction. These efforts help make
workers loyal to their unions.