TRADE UNIONS

Trade Union means any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workmen and employers or between workmen and
workmen or between employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more trade unions. They
aim to-

• Secure fair wages for workers and improve their opportunities for promotion and training.

• Safeguard security of tenure and improve their conditions of service.

• Improve working and living conditions of workers.

• Provide them educational, cultural and recreational facilities.

• Facilitate technological advancement by broadening the understanding of the workers.

• Help them in improving levels of production, productivity, discipline and high standard of
living.

• Promote individual and collective welfare and thus correlate the workers' interests with that of
their industry.

Trade Unionism in India

 The earliest known trade unions in India were the Bombay Millhand's Association
formed in 1890
 The earliest known of such unions were the Printers’ Union formed in Calcutta in 1905
and the Bombay Postal Union formed in 1907.
 Trade Union movement began in India after the end of First World War.
 The most important and the most powerful, All India Trade Union Congress, came into
being in 1920. The AITUC thereafter occupied a dominant position in the nationalist
movement for nine years-until in 1929 it suffered its first major split.
 Also in 1920 the first Trade Disputes Act was enacted.
 world-wide uprising of labour consciousness and the consequent establishment of the
International Labour Organisation (ILO) in 1921 lent a new status to the working class. 
 Factories Act was enacted in 1922, and the Indian Mines Act and the Workmen's
Compensation Act in 1923. The Indian Trade Union Act was passed in 1926 recognizing
the legality of unions.
  Nagpur session of the AITUC in 1929 displayed the trial of strength between the leftists
and the rightists (or the moderates or reformists).
 The Minority group or the so-called reformists in the trade union movement, led by N. M.
Joshi seceded from the parent body and formed a new organisation—the All India Trade
Union Federation. 
 Second split of the AITUC took place in 1931 in the Calcutta session of the AITUC. The
result was the formation of the All India Red Trade Union Congress by the communists.
 With the communist influence thus waning, the Red Trade Union Congress (RTUC) was
dissolved and merged with the AITUC in 1935. 
 The reunited AITUC appealed to the National Trade Union Federation (NTUF) to forge
unity.  The full merger became a reality in 1940 when the NTUF dissolved itself. 
  The Second World War broke out on 3rd September 1939 
 In 1941 the Indian Federation of Labour (IFL) was formed. It gave wholehearted and
unconditional cooperation to the British Government on the issue of war
 Defection in the AITUC again became sharp in 1942. Since then, the AITUC came to be
dominated by the communists. 
 The Congress activists working in trade unions formed a separate but small organisation
known as the Hind Mazdoor Sewak Sangh.
 Vallabbhai Patel, President of the Hind Mazdoor Sewak Sangh, started the Indian
National Trade Union Congress (INTUC) on 3rd May 1947 
 In 1948, after its secession from the Indian National Congress, the Socialist Party leaders
felt that to serve the best interests of the workers they should have their own trade union
wing. This led to the formation of the Hindi Mazdoor Panchayat which, after its
amalgamation with the Indian Federation of Labour, resulted in the formation of the Hind
Mazdoor Sabha (HMS).
 Again, in April 1949, some secedes from the AITUC who could not agree with the
principles and objectives of the HMS sponsored the formation of a new labour
organisation—the United Trade Union Congress (UTUC).
 Thus, at the beginning of 1950, there were four central federations of labour unions : the
AITUC headed by the communists, the INTUC of the Congress Party, the HMS of the
Praja Socialist Party, and the UTUC under the influence of the RSP (Revolutionary
Socialist Party).
 The Bharatiya Mazdoor Sangh (BMS), the Indian National Trade Union Congress
(INTUC) and the All India Trade Union Congress (AITUC) are considered the largest
trade unions in India. The country’s manufacturing sector in particular is heavily
unionized.
Problems of Trade Union

a) Small size of the unions The small size of the unions is due to various factors, namely,

i. The fact that any seven workers may form a union under the Trade Unions Act of 1926, and
get it registered, a large number of small unions have grown.

ii. The structure of the trade union organization in the country is in most cases the factory or the
unit of employment. So whenever employees in a particular factory or mine are organized, a new
union is formed.

iii. Unionization in India started with the big employers and gradually spread to smaller
employers. This process is still continuing and pulled down the average membership. Though the
number of unions and union membership are increasing, average membership is declining.

iv. Rivalry among the leaders and the central organizations has resulted in multiplicity of
unions, thereby reducing the average membership.

b) Inadequate funds : Because of the small size of the unions, they suffer from lack of adequate
funds and they find it difficult to engage the services of experts to aid and to advise members in
times of need. Further, they cannot face the challenge of employers for long because of their
weak bargaining power.

 The trade unions suffer from financial weakness for the average yearly income of the
unions has been rather low and inadequate.
 Under conditions of multiplicity of unions, a union interested in increasing its
membership figures, usually keeps the subscription rate unduly low and does not collect
even that subscription regularly.
 Insufficiency of funds is the main reason for the deplorable conditions of many a small
union. The poor financial position adversely affects their entire working. They can
neither undertake any welfare activities for their members nor can undertake successful
conduct of strikes, or publication of periodicals.
 To improve the financial condition of the unions, the National Commission on labour
recommended that the minimum subscription should be raised.
 Another method that is usually advocated is the introduction of the “check-off system,”
under which an employer undertakes, on the basis of a collective agreement, to deduct
union dues from the workers’ pay and transfers the same to the union.

c) Multiplicity of the Unions & Intra-Union Rivalry : Multiple rival unionism is an important
feature and one of the great weaknesses of the Indian trade union movement. Multiple unions are
mainly the result of political outsiders wanting to establish unions of their own, with a view to
increasing their political influence, albeit in urban areas.

 The existence of different conflicting or rival organizations, with divergent political

views, is greatly responsible for inadequate and unhealthy growth of the movement.
 Multiplicity of unions lead to inter-union rivalries, which ultimately cuts at the very root
of unionism, weakens the power of collective bargaining and reduces the effectiveness of
workers in securing their legitimate rights.

d) Intra-Union rivalry: Another vexing problem is that of intra-union rivalry. Trade union
rivalry is acute and pervades the entire industrial scene in India. In practically every important
industry or industrial center, there exists a parallel and competing union.

e) Outside Leadership Issue: Another disquieting feature of the trade unions is the ‘outside’
leadership, i.e., leadership of trade unions by persons who are professional politicians and
lawyers and who have no history of work in the industry. This is ‘leadership by intellectuals’
rather than ‘by workers’. It applies at the local as well as at the national level. There are several
reasons for this phenomenon namely, for avoiding victimization of worker-office-bearers of the
trade unions, and at times for lack of financial resources to appoint whole time office-bearers.
f) Politicization of the Unions: One of the biggest problems the country’s trade union
movement faces is the influence of the political parties, i.e. the most distressing feature is its
political character. Harold Crouch has observed, even to the most casual observer of the Indian
trade union scene, it must be clear that much of the behavior of Indian unions, whether it is
militant or passive behaviour, can be explained in political terms.