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Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar
Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar
Unions in Contemporary
Indian Industry
Mukesh Bhavsar
First Year, MA HRM
Tata Institute of Social Sciences
Hyderabad
Introduction
With the changed social, political and educational environment in terms of awareness of right,
trade unions are considered a major component of industrial relations system. Workers union
plays a crucial role to protect the interest of its members.
Trade unions traditionally performed different roles in their relations with individual employers,
employer associations, the state and the public at large. Unions directly or indirectly played an
economic role of facilitating production and distribution in society. Unions played this role
largely by promoting cooperation between capital and labour in production and in enterprise
restructuring, to secure sustainable growth consistent with social equity, employment
opportunities, improved living and working conditions. Unions also have argued for ensuring an
equitable distribution of the value-added by the production process. Unions perform the
democratic and representative role by providing an identity to labour at the workplace, and in
society at large.
games and other recreational facilities. Some trade unions go so far as to undertake housing
schemes for their workers and undertake publication of some magazines or journals
Trade unions are a legitimate system for organising workers to voice their rights and grievances.
Without unions, companies would become either too paternalistic or too dictatorial. Responsible
unions play an important role in maintaining cordial relations between management and labour.
The aims and objectives of the major trade unions in India are seen to vary according to their
political ideologies. For instance, some unions are influenced by Leftist principles aimed at
overhauling the capitalist mode of production as a whole.
Make in India
In recent years, concerns have been expressed about the Indian economy's reliance on the services
sector. It is felt that there is a need to build a larger manufacturing sector. With make in India
program government is planning a major new national program designed to transform India into a
global manufacturing hub. It will bring more investment in manufacturing and create more
employment. Thus trade unions will have to reposition themselves in changing investment
scenario.
Challenges
Some of the major problems faced by trade unions in India are small size, poor finance, and
politicization, multiplicity of unions and lack of enlightened labour force. But among others the
key challenges before Indian trade unions are as follows1. Labour flexibility measures have either replaced regular jobs with contract labour or have
at least created bad jobs. Flexible labour laws are likely to lead to less hiring and more
firing.
2. Labour penetration by the union in the unorganised sector is only at the stage of infancy
and needs to be fostered at an accelerated pace.
3. The increasing integration of national economies in a single global market and the
appearance of new world production systems are demanding stronger coordination of
national and international trade union agendas.
4. With the deepening of reform and opening-up, India has continued to face enormous
employment pressures. The Indian trade unions have heavy tasks in promoting
employment and protecting workers.
5. With the expansion of economy, Indian enterprises are gradually entering into the
international market, and labour relations in the India-funded enterprises overseas are one
of new concerns of the trade unions.
6. Politically affiliated Trade Unions failed to fulfill the aspirations of India workers and as
such there is urgent requirement of more professional body which is not politically
inclined and can give voice to the rights and welfare of workers.
Conclusion
Trade Unions are vital institutions in an Industrial Relations System. Since 1991, the IR scenario of
the country has been changing. The State Governments industrial policy is mostly favoring to the
employers. Decisions are coming for the industries. Their interest is given priority. Unionism
representing the ethos of collectivism appears to be getting marginalized. These institutions are still
being afflicted by age long maladies like politicization, rivalries. In this context, quest for the future of
unions as an industrial as well as socio-political institution is of great importance.
Trade unions must reinvent themselves to sustain their organization in the years ahead. Most
important challenge for unions in the 21st century will be to shift from the old strategy of
confrontation and conflict to one of cooperation and collaboration. Education and human resource
development activities which have been often cleverly used by the management could be used by
unions as effective policy instruments to reduce the vulnerability of informal sector workers. Trade
unions in India, for example, could play an important role to re-train and rehabilitate the large number
of workforce who will be he required to be separated from the Indian public sector enterprises and
state establishments.
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