Brief History of Trade Union Movement in India

Introduction

Trade unions are organizations of workers formed to protect the rights and interests of
workers through collective action.

Trade unions are democratic institutions which are essentially the product of modern
large scale industry. Indian trade unions did not grow out of any existing institutions
in the society. They developed as a new institution. So far as the question of
formation and development of Trade Unions in India is concerned, its necessity was
realized from 1875 onwards by philanthropists, social workers like Shri Soirabji
Shapaji Bengalle and Shri N.M. Lokhandey.

Growth of Trade Unions in India

The first phase: (Roughly from 1875 till 1920)

It was not until the close of First World War, that the modern trade Union movement
really took permanent roots in Indian Soil. During this phase the inception of trade unions
took place. There was labor unrest in India at the end of the First World War. In several
industries, the workers went on strikes to secure wage increases. During this period, the
working and living conditions of the labor were poor and their working hours were long.
Capitalists were only interested in their productivity and profitability. In addition, the
wages were also low and general economic conditions were poor in industries.

During the period the trade union movement was essentially humanitarian. Some
friendly societies were formed to look in to the welfare of workers. The first Indian trade
union, Bombay Mill Hands Association was formed in 1890, with an immediate aim of
agitation for a revision of first Indian Factories Act 1881. In 1905, the Printers
Association of Calcutta and Dock Union Board in Bombay were formed.

The Russian Revolution and the Industrial Labor Organization also inspired the Indian
laborers to launch trade unions like the Spinners Union and Weaver’s Union which had
been established in Madras and Ahmedabad respectively.

The second phase: (1920-1947)

This period actually marked the beginning and growth of organized and continuous trade
unions and political movements of the working class. Madras became the nucleolus of
organized the labour activity . B.P.Vadiya founded the Madras Labour Union 1919.

Between 1918 and 1923, many unions came into existence in the country.

At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like

spinners’ unions and weavers’ unions were formed. A strike was launched by these unions
under the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions
federated into industrial union known as Textile Labor Association in 1920.

In 1920, the All India Trade Union Congress (AITUC) was set up. Many of the leaders of
this organization were leaders of the national Movement.

The origin of the passing of the Trade Unions Act was the Buckingham Mills Case of
1920 in which Madras HC granted an interim injunction against the strikes committee of
the Madras Labour Union, forbidding them to induce certain workers to break their
contracts of employment by refusing to return to work.

In 1926, the Trade Unions Act was passed which gave a legal status to the registered
trade unions. The said Act conferred certain privileges on the registered trade unions in an
industrial unit. The Trade Unions Act has made it compulsory for trade unions to use their
funds for workers interests and to subscribe a membership fee. Most of the members of
the executive committee of a trade union must be employed in the factory.

In 1930, the climate was not favorable to the growth of trade Union movements in India.
The prosecution of the communists involved in Meerut conspiracy case and the failure of
Bombay Textile strike of 1929 retarded the trade union movement. Moreover the serious
economic depression was added with it, during the period.

In the next phase, the Second World War gave a great impetus to the trade union
movement in India. The rising cost of living forced laborers to organize themselves into
trade unions. At the same time the Second World War split the trade union leaders on the
question of participating in the war. Industrial unrest was also increased during this
period. As a result; there was a marked increase in both the number of trade unions and of
organized workers.

The Third Phase in Independent India: (1947-1991)

The third phase began with the emergence of independent India (in 1947). The partition
of country affected the trade union movement particularly Bengal and Punjab. With
independence and partition, the country was plunged into growing unemployment. A
series of strikes occurred, in the country.

In the period 1918-47 after independence, trade union developed into an effective
instrument for protecting and safeguarding the interest of the labourers.

The All India Trade Union Congress was split up as a result of which the

Indian National Trade Union Congress (INTUC) was formed in 1947 under the control of
congress party.
The Hind Mazdoor Sabha (HMS) was formed by the socialist Party in 1948, and

United Trade Union congress (UTUC) was formed in 1949.

Centre of Indian Trade Unions (CITU) has been formed by the Communist Party
(Marxists).

THE GROWTH OF THE TRADE UNION MOVEMENT IN POST-

INDEPENDENCE INDIA

The working class movement was politicized along the lines of political parties.

There are more than fourteen thousand registered trade unions in India. The steady
growth of trade unions in India is due to the political consciousness among the laborers as
well as the governmental measures to facilitate collective bargaining through appropriate
legislation has led to a rise in the Trade Union Movement in India.

The Constitution Of India gave a new orientation to the trade union movement. Insertion
of Article 19 (c) one of the Fundamental Rights which reads as, All citizens shall have the
right “to form association or unions”. On which restriction can be imposed under Art. 19
(4) in the interest of sovereignty and integrity of India or public order or morality.

Further the passing of industrial works committee , formation of development councils

under the Industries (Development & regulation ) Act 1947, enhanced the prestige of
trade union and thereby boosted up its movement.

Five years plans also had several provision for the trade union particularly second, third
and fourth. Fourth plan stressed that the trade union is to play an important role to realize
the goals of national development.

Trade unions during the post-independence period preferred state-led planned

industrialization. The national government also passed a number of Acts with which they
codified the roles of trade unions as instruments of collective bargaining on behalf of the
workers. The entire idea was that these institutions should be used to reduce the areas of
conflict by dialogue, rather than resort to strikes. In case of failure by dialogue, the
government used the instrument of compulsory adjudications, by appointing state as well
as national level tribunals. The result was that trade unions felt that the state has given
them a respectable place to voice their concerns and thus they were able to extract with
the help of the state good amount of power to protect and promote the interests of labour.
In other words, this period was marked by a social cohesion between the state and the
trade unions to improve the miserable conditions of the working class. The arm of the
state was in favour of the working class.

Besides workers, white-collar employees, supervisors and managers are also organized
by the trade unions, as for example in the Banking, Insurance and Petroleum industries.
Trade Unionism post 1991:

However, the economic reform process initiated by Rajiv Gandhi, and later strengthened
in 1991, adopted the Liberalisation, Privatisation and Globalisation, model of
development. In other words, the country accepted the market-based strategy to
accelerate development with least amount of state intervention. This had an impact on the
trade unions. The arm of the state started strengthening the capitalist class and they were
considered as the chief instrument to promote development. A new meaning was given to
the term ‘labour reform’ which implied the power to ‘hire and fire’ workers, freedom to
determine wages according to the market demand and supply.

The capitalist class has been pressurizing the state to permit labour flexibility in
business, which implies the right to retrench labour, to permit business firms to replace
regular workers with either temporary or contract labour so that the benefits of provident
funds, gratuity, paid leave etc. are denied to a part of the working class. All this is being
argued with a view to reduce costs so that firms can face competition while earning
reasonably good profits.

Although the state did not undertake ‘labour reforms’ by introducing a new legislation to
legitimize the demand of the capitalist class, it silently worked to reduce state
intervention. Regular workers were replaced by contract workers to reduce wage costs, so
that business firms could compete in the market. This started the process of weakening
the trade unions. The state itself started the process of ‘shedding the load of surplus
workers’ by adopting various methods like freeze on fresh recruitment, by offering
workers voluntary retirement schemes (VRS).

During the last few years, cases of repression by the state of the working class have
further weakened the trade unions. A few instances are being mentioned. The
Government of Haryana unleashed ruthless violence by the State Police against striking
workers in Honda Motorcycles.

With increasing demands for more skilled workers, in sectors, such as Information
Technology (IT), Business Process Outsourcing (BPO) and Retail Sector, with large
potential for increasing employment opportunities, a new class of managers and skilled
workers are being recruited by business firms. Consequently, a new class of highly paid
workers is emerging—they do not like to be members of trade unions, but form their own
associations to seek larger benefits. The knowledge sector employees get hefty pay
packets which give them a certain kind of arrogance not to be a part of trade unions with
other industrial workers.

Individual bargaining is the key mode of determining rules of employment relationship.

Closures, retrenchments, increasing proportion of casual/contract workers have further
led to contraction of the union-base.
 The unions, in order to increase their penetration are now to organize the unorganized
workers in the informal sector. Labour penetration by the union in the unorganized sector
is only at the stage of infancy.

Since the bargaining power of the trade unions has weakened, it is relevant for trade
unions to shed the old strategy of confrontation and conflict and shift to cooperation and
collaboration. The BMS President, Hansubhai Dave observed in this connection: “These
Leftist unions always resort to a ‘Bharat Bandh’ and call for a strike.” But the BMS wants
to utilise other options of dialogue, negotiations and presentation of convincing analysis
of the prevailing situation.