MODULE II: REGULATION

OF TRADE UNION AND

UNFAIR TRADE PRACTICES
History and Development of Trade
Unionism in India
History and Development of
Trade Unionism in India
 Trade Unionism in India
 The Trade Unions Act, 1926
Trade Unionism in India

 The excesses induced by employers by the employees for profiteering due

to capitalism and factory system of production resulted into the evolution
of trade unions.
 Workers had common problems and issues, and thus they had sense of
brotherhood.
 Power of unity and common concern was pushing them to raise their voice
for common good.
Trade Unionism in India

 Trade Unionism was needed to realise the democratic

rights of workers.
 Workers were demanding for following through trade
unionism:
 Equal status vis-à-vis employers for dealing with issues
relating to work environment and working conditions.
 Factory legislations
 Extended educational facilities
 Removal of social barrier
Trade Unionism in India

 (continued) :
 Permanent employment with all benefits and securities.
Such securities included living wages, better working
conditions, bonus, gratuity, pension, free medical facilities
and provision for recreation.

 These provisions further the realization of workers’

democratic rights.
Democratic Rights of Workers

 Freedom of Association (important for their unity and

achievement of other democratic rights of workers.)
 Freedom of speech and expression (needed for freedom of
framing opinions, following and expressing them.)
 Right to equality (equality in terms of dealing with
employers at equal terms though their socio-economic
status were positioned at different level.)
 Right to life and personal liberty (Its protection is very
much essential.)
Powers required for Expression of Freedom

 Economic Power (must not be under the control of a few capitalist

employers) to meet basic human needs and maintain dignity.

 Unity, very important for following:

 Removal of social barriers
 Removal of conflict
 Provision of better working conditions and social security

Therefore, Unity is basic idea behind trade unionism.

Trade Unionism

 Trade unionism is needed for extension of liberty for

masses.
 Its motive is to break the concentration of money and
monopoly.

Further, balance between interest of workers and that of

society was needed for industrial peace, development and
harmonious social order in society. For this purpose
negotiations between employers and employees could take
place only through representation of workers through trade
unions.
Trade Unionism

 Trade Unionism, thus, was outcome of the clash

between factory system of production and capitalist
order of society. Also, the laissez faire system could not
take care of socio-economic interests of workers.
Summary

Trade Unionism is :
 A positive ideal
 Combining workers with their collective strength
 For fulfillment of their common needs regarding their
common needs, aspirations, interests and security
 An outcome of capitalistic factory system.
Development of Trade Unionism in India

 It started with advent of factory system in India in 1851.

 In earlier days of development of trade unionism,
efforts of workers were termed as criminal conspiracy
as it was ante to freedom of contract.
 Large number of cases were being registered against
early trade unionists.
 In 1875 Indian factory workers united for securing
better working conditions and showed consciousness of
common cause for amelioration.
Development of Trade Unionism in India

 Bombay Millhand Association was the first labour

association established in 1890. Later various labour
associations were formed and they were essentially
labour welfare organisations.
 They aimed to mitigate the evils of modern factory
system and improve the working conditions.
 They used to represent their cases before the
government and used to press for suitable laws.
 During this period strikes were rarely used to pressurize
the employer.
Development of Trade Unionism in India

 Declaration of World War I in 1914 helped in growth of

labour movement; due to war and shortage of shipping
facilities import of commodities was restricted.
 Price of the products therefore increased and capitalists
were earning enormous profit, living cost increased but
the wages were very low. The situation of exploitation,
discontent and deprivation brought class consciousness
in them.
Issues of workers were:

 One to one negotiation about wages between workman

and employer used to happen and protest by one worker
was of no effect.
 They needed to bargain with the employer and for that
they needed union.
 They wanted right to get united and to press for their
demands collectively and go for strike if their demands
were not met.
 They were concerned about employment conditions of
women and children, long working hours, exploitation
and high death rate, lack of education and poor
housing, etc.
Development of Trade Unionism in India

 By pressurizing the factory owners, the workers could

improve their working conditions.
 The non-cooperation movement of Mahatma Gandhi
provided them direction and leadership.
 The setting of ILO, a tripartite body helped the workers
organise further.
 Also, Russian revolution and establishment of USSR
impacted Trade Union Movement.
 All India Trade Union Congress was established in early
1920’s.
 During this era, labour movement was united and there was
complete harmony and co-operation among all sections of
working class.
Development of Trade Unionism in India

 The strike of Buckingham and Carnatic Mills Workers

was remarkable as the Mills filed a suit and claimed
damages of Rs. 75,000 from the Trade Union leader Mr.
B. P. Wadia and injunction against the strike. The
injunction was granted and the Mills settled the issue
with Mr. Wadia.
 This case highlighted the plight of workers in India, now
along with Indian Trade Unions British Trade Union
Congress impressed upon Secretary of State of India for
the need of trade union legislation.
Enactment of Trade Union Act

 The strike of Buckingham and Carnatic Mills Workers

was remarkable as the Mills filed a suit and claimed
damages of Rs. 75,000 from the Trade Union leader Mr.
B. P. Wadia and injunction against the strike. The
injunction was granted and the Mills settled the issue
with Mr. Wadia.
 This case highlighted the plight of workers in India, now
along with Indian Trade Unions British Trade Union
Congress impressed upon Secretary of State of India for
the need of trade union legislation.
Enactment of Trade Union Act

 The Secretary also understood the concern and agreed

for the same.
 Recommendations were made for legislation for :
 Registration of trade unions
 Protection of trade unionists and trade union officials from
civil and criminal liability for bona fide trade union
activities.
 Though resolution was moved in Legislative Assembly
in 1921, the Bill based on British Trade Union Act, 1871
was introduced only in 1925 and the Act was passed in
1926.
Enactment of Trade Union Act

 Trade Union Act was important for:

 Legal status for registered trade unions conferring powers
and advantages
 Voluntary registration and adoption of adequate rules for
functioning of the trade union
 Immunity from civil and criminal prosecutions
 Enhanced the status of trade union in the eyes of workers
and public
 Keeping and audit of proper accounts
 Filing of annual returns
Enactment of Trade Union Act

 The trade unions could also use the funds for political,
social and cultural development.
 By amendment procedure regarding appeal was
provided for.

Still, compulsory recognition of trade unions was not

provided. It is still not there in the Trade Union Act, 1926.
Though, the era saw establishment of trade unionism in
India.