TRADE UNIONISM IN INDIA

This article is written by Shruti Sharma of 5^th semester of The Law School University of Jammu, an intern under Legal Vidhiya.

ABSTRACT

Trade Unionism in its entirety means the actions and re beliefs that are directly related to the Trade Unions. This Articles mainly tries to explain that how the Trade Unionism in India has evolved and what has been its impact upon the Indian state. A Trade Union is basically a group or organisation of people who have banded together to achieve certain goals that are common to them and those goals are mainly related to wages, working conditions, working hours etc. India as a nation has a large number of Trade Unions, in fact, India has the largest number of trade unions. The trade unions have evolved through various stages and their importance hasn’t diminished in the present-day scenario as well. The Indian Constitution also recognises the right to form a Trade Union and The Trade Unions act of 1926 is the main law in this field. Recently, the Trade Unions in India have been facing a few challenges including the Financial Crisis, Intra-Union rivalry, Management Attitude, Politicisation and so on. Due to these problems, there has been some impact upon the productivity of the Trade unions and this hasn’t benefited the workers at all. So, one of the major issues that is faced by the government and the Unions is how to eradicate these problems and ensure the smooth functioning of the Trade Unions.

KEYWORDS:

Trade Unions, Evolution, Economy, Democracy, Liberalisation, Labourers, Industry

INTRODUCTION

Trade has always been the most important part of the economic growth of a nation. It has been in existence since the immemorial and will continue to evolve in the future as well. In India, there has been a rich history of trade and as Indians, huge export of goods used to take place. The role of trade underwent a transformation in the changing conditions. However, one thing remained the same and that is the importance of trade in the development of the country. With the arrival of Britishers in India, the whole notion of trade changed. Since then, the function of Trade Unions had gone through various phases.

In India, the movements related to Trade Unions have passed through the conditions like in Britain after the advent of factory system. The modern factory system in India started through the establishment of cotton mill in 1851 in Bombay and jute mill in 1855 in Bengal. As these mills were established, a lot of problems came along with the progress of the economy and some of those problems were lack of employment of women, poor housing, high death rates etc. In 1875, the Indian factory workers finally came together in order to secure better working conditions for themselves. This was considered to be the Landmark year in the history of Trade union movements in India.

Trade Unionism as a term includes various practices, policies, beliefs that are related to Trade unions and in order to understand it in a better way, we must know about Trade Unions.

WHAT IS TRADE UNION?

A trade union also called labour union is a group of employees within a specific industry, trade, or business. Typically, it is a membership-based organization. The protection and advancement of members’ interests at work is one of a trade union’s primary goals.

In general, the majority of trade unions are not affiliated with any one firm. Trade unions, however, make an effort to cultivate close working ties with businesses. This can occasionally take the shape of a partnership agreement outlining the goals and shared interests of the trade union and employer.

Autonomous, membership-based organizations, trade unions represent the interests of the working class through collective bargaining and advocacy. They represent their members in conversations with employers, provide advice to members experiencing problems at work, and bargain for improved pay and working conditions.

Unions also promote equal opportunity at work, fight discrimination, help ensure a safe and healthy work environment, and support members’ educational and learning opportunities. Unions also make sure that the legal rights of their members are respected. Many unions provide services to their members, such as financial support, private legal counsel, and welfare benefits.

Trade unions usually use regularly assessed fees known as union dues to finance the operations of their head office and legal department. Workplace volunteers who are frequently chosen by their fellow members through democratic internal elections comprise the majority of the union representatives in the workforce. The trade union negotiates labor contracts, or collective bargaining agreements, with employers on behalf of its members, known as the rank and file, through an elected leadership and bargaining committee

Trade unions are therefore:

• negotiate salary and benefit agreements with employers.
• Discuss significant workplace modifications, such as widespread layoffs, with employer’s voice concerns from members.
• attend meetings for disciplinary and grievance proceedings with them.
• Give members financial and legal guidance.
• offer educational resources as well as specific customer perks like insurance at a discounted rate.

ORIGIN OF TRADE UNIONISM IN INDIA

The growth and origin of Trade Unionism can be classified into the following phases:

Pre-1918: The Genesis of the labour movement in India:

In the 1600s, the British began to colonize the Indian subcontinent, establishing mills and factories in the process that paralleled Britain’s Industrial Revolution. India had an abundance of cheap and unreliable labour in addition to the natural resources and land needed to establish the industries, which was the primary reason the British felt it was appropriate to begin industrialization there. In India, factory production began in the early 1860s. The goal at the time was to export the produced goods to British markets. In the port cities of Bombay and Kolkata, factories were established to facilitate export. There were established jute mills in Kolkata and cotton textile mills in Bombay. Eventually, Madras also saw the setup of factories.

The working conditions in India were worse than in Britain, and workers united to protest against the exploitative and pitiful working conditions, wages, and policies of expulsion. The first labour unrest dates back to 1877, when workers at Empress Mill in Nagpur organized a strike in response to a sudden wage reduction. Since this type of unionism was new, there was no legislation governing the establishment of these new labour unions. As the labour class became more and more dissatisfied, there were few attempts to investigate and find a solution.

Factories Commission, 1875: This was the first commission established to thoroughly investigate factory conditions. It concluded that a legal limit was required, leading to the passage of the Factories Act, 1881.

Factories Commission, 1885: Based on the findings of the investigation of the first commission, the Second Commission was established in 1885, and the second Factories Act was enacted in 1891.

The Royal commission on Labour established in 1892 in India has observed Trade unionism, to be fully effective, requires two things: a democratic spirit and education.

Democratic ideals have not yet been developed among Indian workers and lack of education is the most serious obstacle. This last difficulty does not simply, or even primarily, come from illiteracy. Few unions have the capacity to undertake charitable work and most have difficulty convincing workers of the usefulness of dues, unless a dispute is imminent or ongoing.

The working conditions of India’s labour class did not improve as a result of factories commissions or factories laws. Every Indian worker and their employer signed a memorandum in 1885 committing them to provide rudimentary minimum working conditions. Nevertheless, nothing changed for the better.

1918-1924: The early Trade union phase:

During the First World War, India’s industries grew quickly, which contributed to the working class’s growth. Additionally, this allowed the factory workers to advance to the ranks of skilled laborers and supervisors—positions that were previously held by Europeans. Even though the war helped India’s industries grow, the impoverished suffered greatly as a result of it. There was inflation and a shortage of food. Due to the low pay, this condition primarily affected the working class. this resulted in widespread labour unrest in every town where there were industrialists.

A wave of strikes rocked Bombay’s textile mills. Over thirty strikes were called in September and October of 1917 alone. In 1919, strikes increased in frequency. In protest of lower wages, workers in Kolkata staged protracted strikes. Workers in Madras also went on strike to demand higher pay. For the same reasons, Ahmedabad’s textile workers went on strike. Mahatma Gandhi’s participation in the labour movement and the establishment of the Textile Labor Association were the outcomes of their movement. The demand for higher wages was at the heart of every strike.

The oldest Indian trade union federation, All India Trade Union Congress (AITUC), was founded in 1920. Lala Lajpat Rai, Joseph Baptista, N.M. Joshi, and Diwan Chaman Lal founded it. Lajpat Rai became the AITUC’s first-ever president.

The War’s spiraling prices and the subsequent mass ensnaring of workers were factors that impacted the movement’s expansion. Worse than that, their miserable working conditions made matters worse. As a result, they looked to unionization for collective bargaining power. The main factors that led to the growth of the movement were Low living standards brought about by interested in the plight of workers as a result of the development of Home Rule, the rise of Gandhian leadership, and the socio-political environment. Conversely, employees sought out expert direction and leadership. Their morale was raised by the Russian Revolution and other global events, such as the founding of the International Labour Organization in 1919.

1925-1934: Period of left-wing trade unionism:

This era was marked by increasing militancy and a revolutionary approach. This also saw many splits within the movement. Leaders like N.M. Joshi and V.V. Giri was instrumental in moderating the movement and strengthening its integration into the nationalist mainstream. The AITUC split several times, paving the way for the formation of organizations such as the National Trade Union Federation (NTUF) and the All India Red Trade Union Congress (AIRTUC). However, the need for unity arose and they all merged into AITUC in the next phase.

The government has also embraced the trade union movement. Laws such as the Trade Unions Act, 1926 and the Industrial Disputes Act, 1929 gave impetus to its growth. It grants many rights to unions in exchange for certain obligations. This period was marked by left-wing dominance. We can therefore say this period was the period of left-wing trade unionism.

1935-1938: The Congress interregnum:

There was a stronger sense of unity amongst various unions during this phase. By 1937, the Indian National Congress had taken control of most of the provinces. As a result, an increasing number of unions came forward and joined the nationalist movement. AIRTUC and AITUC amalgamated in 1935. Provincial governments passed various laws that granted trade unions greater authority and legitimacy. Congress ministries adopted a strategy of safeguarding industrial peace while advancing worker interests. The goal was to achieve labour-capital reconciliation, with ministries vying for increased wages and improved living standards. Strikes, however, were viewed as law & order problems by many ministries. They suppressed it with colonial machinery. The unions became very resentful as a result.

1939-1946: Period of Labour Activism:

The workers’ standard of living was further reduced during World War II, which strengthened the movement. A rift developed between the Congress and the Communists over the war effort. This caused even greater division within the movement, among other problems. However, the compounding problems made the movement stronger overall. This included the widespread post-war entrenchment and the ensuing sharp price increase. The trade union movement was strengthened by laws such as the Bombay Industrial Relations Act of 1946 and the Industrial Employment Act of 1946. The movements became more vocal and active in the national movement overall.

Post-Independence Trade Unionism:

The rise of unions served as a defining characteristic. Under Sardar Vallabhbhai Patel’s direction, Indian National Trade Union Congress (INTUC) was established in May 1947. Since then, the Communists have taken over leadership of the AITUC. 1948 saw the formation of the Hind Mazdoor Sabha, which was sponsored by the Praja Socialist Party. Socialists eventually started to have an impact on it. Trade unions and party politics grew closer after independence. With every regional party choosing to establish its own trade union, the number of these parties has increased as a result of their ascent. Nonetheless, since 1991’s liberalization, their influence has been somewhat diminished. Because of the resistance from the trade union leadership, issues like minimum wage and labour code reforms continue to be contentious political issues.

India has also seen various unions unite to address a common issue after independence. These include the Great Bombay textile strike in 1982 and the devastating railway strike of 1974. But after 1991, the public’s support for these strikes is thought to have decreased. Additionally, there is a greater emphasis on informal labour. This is a result of unorganized labour’s extremely precarious position.

The Era after Liberalisation

The government decided to implement the “New Economic Policy” (NEP) in 1991 in an effort to open up the economy. Cracks and splits were also observed in Indian trade unions as a result of pressures from globalization, privatization, and liberalization. This was because the government’s once labour-friendly stance was now more investor-friendly. The workforce was drastically reduced as a result of globalization, and labour unions made a concerted effort to keep workers in their jobs. The liberalization that started in 1991 brought about changes to the industrial relations policy. The policy was now skewed in favour of employers. Employers made the decision to reduce their workforce, implement voluntary retirement plans, and increase workplace flexibility.

The long-standing protectionism policy was unable to keep the Indian industry competitive because manufacturers were forced to compete on the global market and the lack of flexibility posed a major risk to their operations. Globalization consequently led to significant adjustments in India’s industrial relations laws. Following globalization, trade unionism’s primary traits were its small membership base, inadequate funding, unfulfilled welfare promises, political party dominance, and other external meddling in the organization’s operations.

LAWS GOVERNING TRADE UNIONS IN INDIA

The inability of laborers to bargain, particularly those employed in the unorganised sectors, contributes significantly to their exploitation. The exclusive privilege of engaging in collective bargaining is granted to registered trade unions. However, there is legislation in India that deals with trade union recognition, but there isn’t a single law that addresses trade union registration. Through the article 19 (1) (c) of the India constitution, the citizens of India have been guaranteed the right to form unions and associations which include the trade unions as well.

The most important legal provision governing the trade unions in India is Trade Unions Act, 1926[1].

Trade Union Act of 1926

The Trade Unions Act, 1926 deals with various provisions in respect of-

• Conditions Governing the registered Trade Unions.
• Obligations related to registered Trade Union.
• Rights and privileges of a registered Trade Union.
• Trade Dispute settlement

Along with all these provisions the major object of this act is to provide for the registration of the trade unions.

As per section 2(h)[2] of the act, Trade Union is any combination, whether temporary or permanent, formed principally for the purpose of regulating the relations between employees and employers or between employers and employees, or between employer and employer, or to impose restrictive conditions on the carrying on of any trade or company, and includes any federation of two or more.

The Trade Union Act of 1926 is a welfare law that was passed to safeguard the human rights of workers in both the organized and unorganized sectors against cruel treatment. As a result, the law includes provisions for trade union protection, benefits, registration, and regulation. The workers gain as a result.

The abovementioned Act is the major law related to the trade unions. However, there are certain acts that supplement the trade unions act 1926. They are as follows:

The Factories Act, 1948[3]: It was designed to protect the health of workers performing specific types of jobs.

The Minimum Wages Act, 1948[4]: It established minimum pay rates for a number of occupations.

 The Employees’ Provident Funds and Misc. Provision Act, 1952[5]: The Act guaranteed workers’ social security benefits and controlled how much their wages were paid.  

TRADE UNIONISM THROUGH CASE LAWS

In the legal history of Indian society there have been many case laws relating to the trade unions and which have led to the formation of various law policies regarding the same some of the important case laws are:

B. Srinivasa Reddy case[6]

It has been decided that a trade union without a registration or one whose registration has been revoked is not entitled to any benefits under the TU Act or the IDA. This instance emphasizes how crucial trade union registration is.

MRF United Workers Union v. Government of Tamil Nadu[7]

The legitimacy of the process for trade union recognition has been emphasized by the court. Upon approval of a specific recognition procedure, the State government will instruct the Labour Commissioner to request that two unions provide their membership information in accordance with the Code of Discipline. The Labour Commissioner will then determine which union truly represents its members and grant it official recognition. Furthermore, the court cannot allow management to argue that it will not recognize a union with a higher membership after recognition.

 All India Bank Employees’ Association v. N.I. Tribunal[8]

It established the rights of trade union members that fall under the basic right to freedom of speech and expression, i.e., Article I9(I) (c):

• The union members’ right to hold meetings.
• The right to move from place to place.
• The right to voice concerns and spread ideas.
• The right to own property

The case concluded, however, that Article 19(I)(c) does not take into consideration a right related to the accomplishment of all the goals for which the trade union was established. For instance, if one of the goals of the union’s formation was to pressure the employer to raise wages, the union is not legally permitted to demand that the employer meet its goal of raising employee pay. The case also established that relevant industrial legislation may regulate or prohibit trade union strikes.

TRADE UNIONISM IN 21^ST CENTURY

The trade unions faced numerous challenges as a result of the “New Economic Policy” (NEP), but the bright side is that there are now more trade unions than ever before, and they are better organized and run. There are approximately 11,556 registered labour unions in India, with an average membership of 1283 people per trade union, according to Labour Bureau statistics.

Not only this, the trade unions in the present-day scenario have evolved even more with the changing times. The Trade Unions in the 21^st century have following features:

1. Various worker trade unions have failed to submit the returns on the due date.
2.  There has been an unprecedented variation in the expenditure and income of the registered trade unions.
3. A considerable expansion has taken place in the national level federation of the trade unions.
4. The trade unions have fallen short in improving the status of the working class.
5. There has been continuous politicisation of the trade unions which has led to intra-union and inter-union rivalries.
6. Many trade unions have not been able to function in a democratic manner.

Thus, it is evident that the importance of the trade unions still exist but some reforms are required for the further development.

CONCLUSION

An overall analysis of the ever-growing status of the Trade Unions in India leads us to the conclusion that the Unions have played a remarkable role in this aspect of the economic development of the nation. Most of the trade unions have been able to provide suitable environment for the healthy discussions between the employers and the workers so that the demands of the workers are being heard. The Trade unions have evolved a lot as it is clear from the fact that initially the Trade unions functioned just for the collective bargaining for economic considerations but now, they play others roles as well which include cultural programs, welfare activities and many such things. However, this is only one side, the other side of the matter is that the Trade Unions have been facing major problems and weaknesses in the recent decades. These problems become more complex and then they impact the productivity as well. So, it is very important that the problems are dealt with in the most appropriate manner.

REFERENCES

1.WIKIPEDIA, https://en.wikipedia.org/wiki/Trade_unions_in_India

2. IPLEADERS, https://blog.ipleaders.in/trade-unions-act-1926/

3.TIMES OF INDIA, https://timesofindia.indiatimes.com/readersblog/lawpedia/trade-unionism-in-india-46867/

4. CLEAR IAS, https://www.clearias.com/trade-unions-history-labour-unions-in-india/

5. S.N. Mishra, Labour & Industrial Laws (Central Law Publications, Allahabad, 27^th edition, 2014)

6. K.D. Srivastava’s Law Relating to Trade Unions and Unfair Labour Practices (Eastern Book Company, Lucknow, 4^th edition, 2002)

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[1] Trade Union Act, 1926, Act 16, 1926

[2] Trade Union act of 1926

[3] The Factories Act, 1948, Act no. 63, 1948 (India)

[4] The Minimum Wages Act, 1948, Act no. 11, 1948 (India)

[5] The Employees’ Provident Funds and Misc. Provision Act, 1952, Act no. 19, 1952 (India)

[6] B. Srinivasa Reddy v. Karnataka Urban Water Supply & Drainage Board Employees’ Association, (2006) 11 SCC 731(2)

[7] MRF United Workers Union v. Government of Tamil Nadu, [2010(124) FLR3861, (2009) IVLLJ685Mad, 2009 WritL.R881]

[8] All India Bank Employees’ Association v. N.I. Tribunal, 1962 SCR (3) 269

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