History of Trade Union

Movement in India
• Trade union movement is one of the forms of labour movement
which is achieved as the labour movement matures
• Labour Movement is a wider term and includes within it embrace
strike, lock-outs, labour conferences, labour legislations, labour
policies, formation of labour associations and trade unions, etc.
• So, labour movement is used to designate all the organized activity of
wage earners to better their conditions either immediately or in the
more or less distant future
• Labour movement in India was not started by the workers themselves
as they were socially and economically too weak to raise any voice
against the wealthy and powerful employers
• This movement was started for the workers by social reformers as a
modest humanitarian effort to improve the working conditions of the
workers
• The seeds of labour movement in India were sown in the second half
of the nineteenth century by social reformers out of their sympathy
for the workers as they were moved by the inhuman treatment given
to the workers in India by their foreign employers
• For example- Dinbandhu Mitra, a dramatist and a social reformist led a
labour agitation in Bengal in 1860
• In 1875 Sarobji Shahpuri protested against the poor working conditions of
workers in Bombay and drew the attention of the government towards it.
• The name of social reformer S.S. Bengalee figures prominently in the
history of labour movement in India for his pioneering work in improving
the working conditions of workers. He exerted pressure upon the British
Government to make laws to improve the working conditions of workers
• Ultimately in the year 1881 the first Factory Legislation in India was passed
but this Act was much limited in its application.
• As it applied only to the factories employing 100 or more workers and
regulated the working conditions of children below the age of 12 years.
• Another social reformist that made notable contribution in the labour
movement in India was Mr. Lokhande.
• He started in 1884 a Labour Journal “Dinbandhu” and it was the first
working class newspaper brought to the fore the appalling working
conditions in which the workers were working
• The trade union in India can be traced back to the year 1890, when for the first time an
association of mill workers was formed in the name and style of ‘Bombay Millhands Association’
• This association was formed for the redressal of grievances of the workers
• It is difficult to treat this association as trade union in the strict sense in which this expression is
used now.
• After the first world war was over then the cost of living considerably increased and this raise the
political upsurge found its way in economic discontent amongst specially in the workers
• It lead to the number of strikes by workers and on many occasions these strikes were successful in
getting the demands of workers fulfilled
• So that’s why the trade union movement in India got status by the success of strikes in India and
the world-wide uprising of labour consciousness
• The establishment of International Labour Organisation has also influenced the growth to the
trade union movement
Formation of Trade Unions in India
• Modern from of trade unions were formed in India after the first world war
during the period 1918-1924
• The first modern form of trade union in India was Madras Trade Union
(Textile) that was formed on April 27, 1918 under the leadership of B.P.
Wadia
• This was the first trade union in the real sense of the term as it had regular
membership of workers and the permanency in the character which was
missing in the early loosely formed labour associations that were formed to
deal with an immediate demand of the workers
• Modern form of trade union is characterized by the permanence in their
character with regular membership
• The main causes that gave rise to the modern form of trade unionism
in India during the period 1918-1924 was
- First world war
- Formation of International Labour Organisation (ILO) in the year 1919
- National Movement in India

1. First World War- was a significant event that contributed in the

development of trade union movement in India.
- World war made a new awakening among the working class
- During the first world war that took place during the period 1914-1918, the industrialists
made huge profits by raising the process of essential commodities of daily life but made
no increase in the wage of the workers
- Huge profits to the industrialists with the efforts of workers, steep rise in the essential
commodities and no corresponding increase in the wages of the workers caused much
unrest among workers
- Workers had to resort to strike and employers retaliated by declaring lock-outs and
industrial peace was thus violently disturbed.
- At the end of world war- I the Indian working class realized the full possibilities of the
weapon of strike as a means for obtaining concessions, higher wages and amelioration of
working conditions.
- The unrest as indicated by the country wide strike attracted leaders and organizers from
different parts into labour movement.
- Under their leadership a number of trade unions were organized in different industries
on permanent basis.
• The first world war not only awakened the workers to their right but also led the
government to realize the significance of workers in the industrial production
• The workers made significant contribution with their labour when the nations at
war needed continuous supply of goods
• Considering the contribution of workers as the main force behind the supply of
goods during the war the govt. came forward to interfere to ensure fair dealing to
the workers
• The State no more remained a mute spectator of the industrial relations between
the employer and his workers but interfered to protect the interest of workers
• The Workmen’s Compensation Act, 1923, Trade Union Act, 1926 and Industrial
Disputes Act, 1929 were the important legislations that were enacted in the post
world war- I period.
2. Formation of ILO- was another important event that had taken place after first
world war which gave impetus to the trade union movement in India
- It was the first organization who gave international recognition to the significance
of the workers
- ILO is based upon the principle that “lasting peace in the world can be ensured
only if it is based on social justice when the worker is not treated as commodity“
- ILO was set up as a tripartite body which has the representation of not only of
employers and government but also the workers.
- India being the founder member State of ILO was to send the representative of
worker to ILO in 1919
- ILO adopted conventions to ensure freedom to form associations to workers
- In the consonance with the international labour standard the Trade Union Act,
1926 was enacted in India.
3. National Movement of India- was an another movement and
development of trade union in the first quarter of 20th century.
- In this perspective, there was also be made of Swadeshi movement in
Eastern Bengal in 1905, which politically gave a stimulus to the workers.
- In Madras, Bombay and Calcutta, the postal workers formed postal unions,
designate as postal clubs.
- The labour union movement in India was also supported by Indian National
Congress and its 35th session held in Amritsar in 1919 and adopted the
resolution as – this congress urges its provincial committee and other
affiliated associations to promote labour union throughout the country
with a view to improving social, economic and political conditions of
laboring classes and securing for them a fair standard of living and a proper
place in the body politics of India.
• Mahatma Gandhi the leader of Indian National Congress held the view that
capital and labour are interdependent and said that “they must work and
behave like twin brothers. The hard work of the labourers produce wealth
and wealth gives birth to mill owners.”
• The inaugural meeting of All India Trade Union Congress (AITUC) the first
national federation of trade unions that was established in 1920 in India
was attended among others by such eminent national leaders as Pandit
Motilal Nehru, Mrs. Annie Besant.
• The Trade Union Act, 1926 provides for the registration of trade unions and
it conferred certain rights, civil and criminal immunities upon the trade
union and also gave a legal status to the registered trade union.
• After independence trade union movement gained momentum
towards a positive direction
• The aim of the trade union was not only to strengthen the unity of
workers to provide an effective front against the hostile employers
but to utilise the union of workers to ensure the welfare of the
members of the trade union
• Fundamental right to form association and unions is one of the most
important right given to the citizens of India under Constitution.
• The contribution of the capital and labour in any industry is equally
important
• Therefore the prosperity of an industry depends upon the co-operation of
its two components- the capital and the labour
• The relation between the labour and capital are inevitable so the object of
any industrial legislation is to ensure smooth relationship and to strive for
settlement of any dispute by resorting to negotiation and conciliation
• The importance of the trade unions lies in the fact that they encourage
such collective bargaining as ensure better terms and conditions of
employment to the labour, better working conditions, privileges to the
labour
• The original Act of 1926 was amended in 1929 so as to provide for the
procedure of appeal against the decisions of the registrar when the
registrar refused to register a trade union then an appeal could be
preferred against any decision
• The Royal Commission on Labour, after examining the working of the
Act, made the recommendations as- the Act was to be re-examined
within 3 years
- The accounts of the trade union should be audited free of charge by
the govt. officers
- At least two-third members of the executive of a trade union should
be persons actually engaged or employed in industry
• Trade union (Amendment) Act, 1947 made some other provisions for the
recognition of trade unions by employers and in case any dispute regarding
recognition was to be decided by the labour court
• Recognition was to be granted if the union applying for such recognition
was representative of all worker
• If a trade union has applied for recognition to the employer, but failed to
get recognition within three months, it could apply to the labour court set
up for the formal recognition by the employer
• The executive of a recognized trade union has the right to negotiation with
the employer in respect of any matter connected with the employment,
non-employment, terms of employment, conditions of work, etc.
• Certain acts amounting to unfair labour practices on the part of the
trade union and employer were declared in the Act
• These are as- participation, support or instigation of an irregular strike
- Submission of returns containing false statement
- Discharge or discrimination against any officer of a recognized trade
union
- Interference with the formation or administration of a trade union