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UNIT: I - Industrial relations

Industrial relations: The term industrial relations have been described as relationship between
management and employees or among employees and their organizations that characterize or
grow out of employment. - Dale Yoder.
The term industrial relations denotes such matters as freedom of association and the right
to organize, the applications of the principle of the right to organize and right of collective
bargaining, of conciliation and arbitration proceedings, and the machinery for co-operation
between the authorities and the occupational organisation at various levels of the country. – The
International Labour organisation.
IRs deal with either the relationship between the state and employers’ and workers’
organisations or the relation between the occupational organisations themselves, - ILO

Objectives of Industrial relations:

1. Facilitate production and productivity
2. Safeguard the rights and interests of both labour and management by securing their co-
operation.
3. Achieve sound, harmonious and mutually beneficial labour management relations.
4. Bring about socialization of industries.
5. Avoid unhealthy atmosphere in the industry
6. Protect and improve the interest of both the labour and management
7. Minimizing employee turnover and absenteeism
8. Uplift the economic status of workers
9. Establish Government control over industries which are running in loss, etc.,
10. Encourage and develop trade unions in order to improve worker’s strength
11. To maintain congenial relations between EE & ER
12. To regulate the production by minimizing industrial conflict through state control
13. To provide an opportunity to the workers to participate on Decision making.
14. To maintain industrial democracy

Factors affecting industrial relations

1. Industrial factors: State policy, labour laws, Voluntary codes, Collective bargaining
agreements, Labour unions, Employer’s organisation.
2. Economic factors: Economic organisations (Socialist, Communist, Capitalist), Type of
ownership, nature & Composition of workforce, the sources of labour supply, labour
market status, disparity of wages, level of unemployment, economic cycle.
3. Social factors: Social group (Caste), Social status (H/L), Social values/ norms etc.
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4. Technological factors: Work methods, type of technology used, rate of technological

change, R&D activities, etc.,
5. Psychological factors: Owner’ attitude, perception of workforce, workers’ attitude
towards work, their motivation, morale, interest, alienation (isolation), dissatisfaction and
boredom.
6. Political factors: Political institutions, system of Govt., political philosophy, attitude of
Govt., Ruling elite and opposition towards labour problems.
7. Enterprise related factors: Style of mgmt., its philosophy and value system,
organisational climate, organisational health, extent of competition, adaptability of
change and other HR policies.
8. Global factors: International relations, Global conflicts, International trade & Labour
agreements, etc.,

Importance of industrial relations:

The healthy industrial relations are the key to progress. Their significance may be
discussed as under –
1. Uninterrupted Production
The most important benefit of industrial relations is that this ensures continuity of
production. This means, continuous employment for all from manager to workers. The resources
are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of
income for all. Smooth running of an industry is of vital importance for several other industries;
to other industries if the products are intermediaries or inputs; to exporters if these are export
goods; to consumers and workers, if these are goods of mass consumption.

2. Reduction in Industrial Disputes

Good industrial relation reduces the industrial disputes. Disputes are reflections of the
failure of basic human urges or motivations to secure adequate satisfaction or expression which
are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, Gherao and
grievances are some of the reflections of industrial unrest which do not spring up in an
atmosphere of industrial peace. It helps promoting co-operation and increasing production.

3. High morale
Good industrial relations improve the morale of the employees. Employees work with
great zeal with the feeling in mind that the interest of employer and employees is one and the
same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of
industry. The employer in his turn must realize that the gains of industry are not for him along
but they should be shared equally and generously with his workers. In other words, complete
unity of thought and action is the main achievement of industrial peace. It increases the place of
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workers in the society and their ego is satisfied. It naturally affects production because mighty
co-operative efforts alone can produce great results.

4. Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is
the business of leadership in the ranks of workers, employees and Government to work out a new
relationship in consonance with a spirit of true democracy. Both should think themselves as
partners of the industry and the role of workers in such a partnership should be recognized. On
the other hand, workers must recognize employer’s authority. It will naturally have impact on
production because they recognize the interest of each other.

5. New Programmes
New programmes for workers development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It increases the efficiency of workers
resulting in higher and better production at lower costs.

6. Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition of
each other. It will help increase production. Wastages of man, material and machines are reduced
to the minimum and thus national interest is protected. Thus, from the above discussion, it is
evident that good industrial relation is the basis of higher production with minimum cost and
higher profits. It also results in increased efficiency of workers. New and new projects may be
introduced for the welfare of the workers and to promote the morale of the people at work. An
economy organized for planned production and distribution, aiming at the realization of social
justice and welfare of the massage can function effectively only in an atmosphere of industrial
peace. If the twin objectives of rapid national development and increased social justice are to be
achieved, there must be harmonious relationship between management and labor.

Scope/ Main aspects of Industrial Relations are:-

i. Labor Relations, i.e. relations between union and management
ii. Employer-employees relations, i.e. relations between management and employees
iii. Group relations, i.e. relations between various groups of workmen
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial Democracy

Dimensions/ Functions of Industrial relations

a. Procurement – Recruitment and selection of employees
b. Development – T &D, performance appraisal & Career planning
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c. Compensation – Pay & Fringe benefits

d. Integration – IRs, Motivation & Conflict resolution (WPM, CB, Grievance handling)
e. Maintenance – Health & Safety, Communication & Counselling.
f. Separation – Retirement, Layoff and discharge and out placement
g. Management of statutory and non-statutory welfare services
h. Mgmt. of social security programmes
i. Maintenance of employee records
j. Field study in HRM & IRs
k. Public relations (Liaison with outside agencies, consultation, HRM experts)
l. Maintenance of close association with the different organisational participants
m. Mgmt. of overall industrial relations system

History/ Evolution of Industrial Relations

The problem of industrial or labour management did not arise when business organisation
were small. These developed only when elaborate organisational structures came into being
during the late 19th century.
1. Agrarian Economy stage
 Before this, the property was common and collective asset of the group, but now it
was identified as a personal asset of the land lord.
 The employer- employee relationship was that of the Master- Servant slave type.
 The slaves were required to do all types of manual and other specialized work.
 Paid no wages but food, old clothes and a small place to live.
2. Handicrafts stage
 There was the categories of worker/ employee & employer
 The workers/ Craftsmen owned factors of production, own tools, own home etc.,
 Sold their product directly to customers
 Master – student relationship.
3. Cottage or putting-out stage
 At the development of economic system, the craftsmen worked with the members of their
family in their own home and were paid on a piece-work basis for the work.

4. Factory or the Industrial capitalism stage

 The cottage workers became factory workers, large no. of people worked under the same
roof.

INDUSTIRAL RELATIONS PROBLEMS IN THE PUBLIC SECTOR

 Evolution of the public sector
 Prior to 1947 – investment on railways, post & telegraph, ordnance factory, and salt
industry
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 Industrial policy resolution ( 1956) – Public sector on public utility services

 Scheduled – A (17 Industries) – Public sector
 Scheduled – B ( 12 Industries) – State owned or Privates

 Objectives of Public Sector

 To promote rapid economic development by filling critical gaps in the industrial
structure
 To provide basic infrastructure facilities for the growth of the economy
 To undertake economic activity strategically important for the growth of the
country
 To achieve balanced regional development
 To reduce disparities of income
 To avoid concentration of economic power in a few hands
 To control sensitive areas
 To attain self – reliance in different technologies
 To enhance employment opportunities
 To increase exports and earn foreign exchange

 Changing Profile of Public Sector

• Upto 1966 – Nehru – PSU get flourished
• Lal Bahadur Shastri – No policy change
• 1967 – Indira Gandhi – Vigorous efforts – rapid development – play a key role
• 1970 – Strongly Favoured to PSU
• 1977 – Janata – Emphasis small, tiny and cottage industries
• 1980 – try for new industrial policy ( but not framed)
• 1990 – Janata – introduced new policy ( failed to indicate substantial change)
allowed private in steel and power

 Problems – Ineffective Working & Failure

 Recurring financial losses
 Bureaucratic style of working
 Lack of professional Expertise
 High cost of projects
 Over stocking of inventories
 Unproductive expenses
 Increased burden of sick units
 Neglect of R & D activities
 Over staffing
 Improper use of existing talents
 Uneconomic & Uncompetitive pricing
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 Lack of organic linkage between big plants and small industries

 Strikes & Lockouts In PSU’s

Central Sphere (%) Public Sector
No of Strikes & Lockouts 20 to 30 26 to 36
No of workers involved 40 to 58 45 to 68
Man days lost in strike 02 to 13 06 to 24

 Causes Of Disputes In Public Sector

•Endogenous
1. Economic benefits – 95% of disputes are directly or indirectly related with it.
2. Indian workers are not match with their employers on intellectually and
resource wise – inferior complexity raised
3. Multiplicity of union
4. Bureaucracy, red-tapism, corruption, and evasion of responsibility
5. Bureaucratic style not allowed to implement dynamic HR Policies
•Exogenous:-
1. Political Nature of Trade Union
2. Philosophies of trade union is influencing
3. Government interference in the working of PSU’s
4.
 Major Industrial Relation Events ( 1991 – 94)
1. Indian Airlines:
• Indefinite strike – 10th Dec 1992 to 25th Jan 1993 for safety and increased
allowances Safety – referred to arbitrator and awards declared by ministry
• Conciliation Settlement was signed on 11th Nov 1993 – provided relaxed flight
duty & time limitations
• Agreed – enhanced flight allowances addition with special & experience
allowances others matters are resolved trough conciliation settlement on 11 th Nov
1994
• Another agitation in October / November was solved through informal
consultation
2. Air India:-
• Flight engineers went on strike on Feb 27, 1993 for similar uniform,
additional flight engineers on long halt flights and enhancement of allowances
• The strike called off on 23rd April 1993 by the settlement provided for three
striped uniforms, intensive training for career progression and others matters
settled by bilateral.
• But they get failed to solved so again there is a strike on 28 th July 1993 and
conciliation settlement was signed on 12th Aug 1993
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3. Strike by Banks & Insurance Employees:-

• Notice of Strike for - One day strike on 2 nd Sept 1993, & 4th Oct 1993 and
Indefinite strike from 2nd Nov 1993 for Wage revision, Gratuity, bonus and
against privatization
• Indian Bank Association signed agreement on 29th October with three associations
– pension and computerization
• A series of strikes took place from Feb to May 1994
• Long Term wage settlement singed on 8th Oct 1994
4. Strike by the postal employees:-
• Six association went strike on 7th Dec 1993 demanding grant of scales, pay scales,
pension, leave with pay to extra dept. employees, revision of pay scales of
postmen, time bound promotion, maintenance work norms and protection against
privatization
• Conciliation proceedings on 8th & 10th Dec 1993 – failed
• Bilateral discussion with ministry on 13th Dec 1993
• Interim relief to extra departmental employees, increased allowances/
compensation to extra departmental / branch post masters holiday allowances to
postmen.
5. All India Industrial Strikes / Bharat Bandh:-
• CITU, HMS, AITUC & UTUC organized Nation wide industrial strike on 9 th Sept
1993 protest against new economic and industrial policy Impact
• 38% on operation of Indian airlines
• 52% to 73% in coal sector, 50% in banking sector
• 20% on insurance sector
• Transport systems of West Bengal, part of eastern India, Kerala, Bangalore and
Pondicherry.
6. Major ports:-
• Between 1992 to 1994 Dec strike for wages by Cochin, Mangalore, Madras,
Tuticorin
• The settlement signed on wages for 11 major ports and 7 dock labour boards on
6th dec1994
• The settlement is for five years from 1st Jan 1993 to 12th Dec 1998
7. Oil India Limited:-
• A long term settlement on wages and working conditions was signed on 25 th May
1993
8. Indian Iron & Steel Co Ltd:-
• Central Trade Union is went on strike on 6 th May 1994 demanded that IISCO
modernization should be by the SAIL

 Suggestions for improving industrial relations

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 Humanization of Management
 Adoption of suitable Human Resource Development
 Control of Union Quality
 Encouraging Workers Participation in Management
 Check Off Systems – Collective Bargaining
 Encourage voluntary arbitration
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Trade Unions

A Trade union is a continuous association of wage – earners for the purpose of

maintaining or improving the conditions of their lives. – Dale Yoder

A Trade union is any combination, whether temporary or permanent, formed primarily

for the purpose of regulating the relations between workmen and employers, between workmen
and workmen, 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 –
Indian Trade Union Act, 1926.

 Functions of Trade unions in India

1. To achieve better/ higher wages and better working conditions for the members
2. To acquire control over running of the industry by workers
3. To minimise the helplessness of the individual workers – against victimization & injustice
by employers
4. To generate self-confidence among the workers
5. To raise the status of the workers as partners in industry (Demanding on increasing share
for them in the management)
6. To encourage sincerity and discipline among workers
7. To take-up welfare measures for improving the morale of the workers
8. The National commission on Labour listed basic functions:
a. To secure fair wages for workers
b. To safe guard the security of tenure and improve conditions of service
c. To enlarge opportunities for promotion and training
d. To improve working & living conditions of workers
e. To provide for educational, cultural and recreational facilities
f. To co-operate and facilitate technological advancement
g. To promote identity of interests of the workers with their industry
h. To ensure on improving levels of production and productivity, discipline and high
standards of quality
i. To promote individual & collective welfare
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 Responsibilities of Trade unions

1. Promotion of National integration
2. Maintain a reasonable degree of peace in Industry
3. Supporting technological change
4. Accept a growth oriented wage payment system

 Problem of Indian Trade unions

A. Multiplicity of unions
1. Small size of unions – Even 7 workers
2. Political influence
3. External leadership
4. Recognition
5. Inter union rivalry
B. Politicalisation
1. External leadership
2. Exploitation by political parties
C. Democracy and leadership
1. Centralized decision making
2. Lake of thorough knowledge
3. Lack of stake (chance) in survival
4. Pre-occupation with many unions
D. Financial position
1. Membership subscriptions are very low
2. Legal charges are enormous
3. Donations are linked to obligations
E. Management attitude
1. Unions are blamed for all difficulties faced by management
2. Recognition of Trade union leads to bargaining
3. Loopholes in labour legislation
F. Statutory support
1. Formation of multiple unions
2. Recognition is not obligatory
3. External membership is allowed
G. Illiteracy and Ignorance
1. Majority workers are illiterate, ignorant and poor
2. Division based on caste
3. External leadership
H. General problems of Trade unions
1. Uneven growth (Industry wise & area wise)
2. Small size of unions
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3. Financial weakness
4. Multiplicity of unions and Intra-union
5. Leadership issue
6. Politicalisation of unions
7. Problem of recognition of TUs
8. An out dated TU laws

 Classification of Trade unions

A. Based on purpose
1. Reformist : Preservation of the capitalist economy and the maintenance of
competitive production based IRs – Two types
a. Business union: Built around congenial ER –EE co-operation
b. Friendly/ Uplift union: Aspire to elevate the intellectual, moral and social life
of the workers
2. Revolutionary unions: Replacing the present system, aims at destroying the
capitalistic system
a. Political union: Resort to political action to protest the workers’ interest
b. Anarchist union: Destroy the existing economic system by revolutionary means.

B. Based on membership
1. Qualified union: Membership is less than 5% of the total employees in any
organisation in a continuous era
2. Representative union: Membership is atleast 15% of the total Employees
3. Primary union: Membership is more than 15% of the total employees

C. Based on Trade
1. Craft union: workers employed in a particular craft or trade, such workers have
similar skills, training & specialization. Eg. Journalist, Teachers, Barbers, etc.
2. Staff union: Association of workers of different trades
3. General union: Workers of any industry, any region and of any occupation form a
union in order to protect their overall interest
4. Industrial union: Workers of different industries form own union (vertical)
5. Federation: Industrial union, either of same industry or of the different industries
tries to improve the workers unity. When federation forms an association called
confederation. Eg: Federation of Indian Railways.

D. Based on Union- Management agreement

1. Closed shop: TUs are the sole authority for hiring workers
2. Union shop: Management has the liberty to select employees but all such selected
employees must become members of the TU within time.
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3. Preferential shop: TUs members are given preference in filling vacancies in

organisation.
4. Agency shop: All members of the organisation irrespective of being member of TU
or not have to pay a specified amount fee.
5. Maintenance shop: Members are free to join or stay away but once they join TU,
they have to remain its member till they leave the company
6. Open shop: There is no compulsion to be associated with TU (If it exists).
Sometimes, TUs do not exist at all.

 Registration of Trade Unions

a. Mode of Registration: The required no. of members for a TU is not less than the
number determined. (Sub-section – 1A)
According to Sub-section – A: a) Not a federation of TUs – 10% of workmen or 100
w.e.is less, b) Other TUs – Seven
- If ½ of the members, decided to withdraw their name form list, before registration, the
application become invalid, otherwise valid.

b. Application for Registration:

- Application to be sent to Registrar, it should be accompanied by a copy of the rules.
- The name of TU, Office bearers, address, occupation etc, should be filled
- The names, occupations and addresses of the members making the application.
- Details of members
- General statement of Assets & Liabilities of TU to be registered.

c. Provisions to be contained in the rules (Sec. 6)

- These rules generally govern & determine the relationship between TUs and its
members.
-
- It provides guidance for the internal administration of TUs, Such as, -
 Name and objectives of the TUs
 Application of general fund of the TUs
 Maintenance of the list of members
 Admission of ordinary/ special members related to industry
 Payment of a subscription by members (Not less than 25ps. / month/member)
 Details of benefits or fine imposed on the members.
 The manner in which the rules shall be amended, varied, etc.,
 The manner in which the members appointed and removed
 Preparation of accounts, safe custody of fund, annual audit, etc.
 The manner in which the trade union may be dissolved.
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d. Registration
- If registrar satisfied – complied with all requirements, it will be registered
- Within a period of 60 days from the date of compliance
- If registrar does not take any action – exceeds 3 months – due to different names of
office bearers are filed by rival group – by using quasi judicial power for take
decisions.
- A registered TU shall at all times continue to have not less than 10% or 100 of the
total workmen, w.e.is less, subject to a minimum of 07 persons engaged or employed
in the establishment or industry with in which it is connected, as its members. All
office bearers of a registered TU except not more than one third of the total office-
bearers or five, w.e. is less, shall be actually engaged or employed in the establishment
or industry with which that trade union is connected.

Characteristics of a Registered Trade union

- It becomes a body corporation by the registered name, has separate legal entity.
- It has a perpetual succession (Continuous running) and a common seal
- Power to hold both movable and immovable properties
- Power to enter into a contract
- It can sue and be sued by the name under which it is registered

e. Certificate of registration
- Issued by registrar of TUs
- If rejecting the application – must be mentioned a written comment on application and
informed about rejection.

f. Cancellation of Registration
Registration can be cancelled or a certificate of registration withdrawn by registrar-
under following circumstances:
- Application is not made by the TU itself and in prescribed manner
- If certificate of registration was obtained by fraud/ mistake
- When the TU has ceased to exist
- If TU, engaged in any illegal strike
- Rule to continue is inconsistent
- TU has rescinded any provisions
- When the primary objects of the TU are no longer statutory objects.
Provided that not less than two months prior notice in writing, specifying the ground(s)
on which it is proposed to withdraw or cancel the certificate, shall be given by the Registrar
to the TU before the certificate is withdrawn or cancelled
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g. Appeal – Appeal within 60 days – from received order of cancellation and to be filed in
the high court/ Industrial tribunal/ labour court.

 Rights and Privileges of Registered Trade Unions

1. Immunity from Criminal liability and Immunity from punishment for criminal
conspiracy (act) – up to certain limit. (Sec.17)
It is provided in the act that no officer or members of a registered trade union is liable to
be punished for criminal conspiracy in respect of any agreement made between the members for
the furtherance of any object on which the general funds a trade union can be spent.
The immunity does not extend to an agreement to commit an offence or intimidation
(coercion), molestation, or violence amounting to an offence. Peaceful strike or gathering is
permitted.
A concerted movement by workmen by gathering together either outside the industrial
establishment or inside, within working hours is permissible when it is peaceful and does not
violate the provisions of law. But when such a gathering is unlawful or commits an offence then
the exemption is lost.

2. Immunity from civil suits in certain cases (Sec.18)

Complete immunity has been provided from civil proceedings and tortious acts to a
registered Trade union, its office bearers and members, of the offence of deliberately bringing
about a breach of contract of employment. If the agent of a TU indulged in tortious act done in
company.
That is, If the TU induces other person to break a contract of employment, or that it is an
interference with the trade, business or employment of some other person or with the right of
some other person to dispose of his capital or his labour, without violation – No suit or other
legal proceedings.

3. Immunity from tortious act (Sec.18(2))

- Reg. trade union is not liable for tortious acts done in furtherance of a trade disputes
by an agent of trade union.
- The inducement of breaches of employment in furtherance of trade dispute or
interference with the business of another person in furtherance of trade dispute – not
illegal
- Compelling employers to withdraw certain disciplinary proceedings initiated against
contemplation/ furtherance of trade disputes.

4. Enforceability of agreement (Sec.19)

- An agreement made between the members of registered trade union not to accept
employment unless certain conditions as to pay, hours of work, etc., are fulfilled, is
valid agreement, can demand for enforceability.
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5. Right to inspect books of trade unions (Sec.20) : The officer or member of TU has the right
to inspect the account books of RTU and the list of members. (By paying 50ps. Fee)

6. Right to minors to membership of TU (Sec.21)

- Any person who has attained the age of 15 years – can be a member of RTU and enjoy
all privileges of such membership.
- A minor (Not attained the age of 18) shall be disqualified for membership of the
executive or hold a position as an office bearer of a RTU.

7. Disqualification of office bearers (sec.21(A))

- Has not attained the age of 18 years
- Has been convicted by a court of law
- Has convicted of any offence under the Industrial dispute act, 1947.

8. Proportion of officers to be connected with the industry

- Not less than ¾ rd (75%) of the members should be connected with the industry.

9. Change of name: Every RTU, with 2/3 of members acceptance can change its name, it is to
be intimated to Registrar of TUs.

Special rights:
1. To collect membership fees during pay period
2. To put up notice board on the premises and affix notices
3. To hold discussion on the premises with the employees - regarding prevention of
Industrial disputes.
4. To meet and discuss employer – regarding employee’s grievances
5. To inspect any place where employee is working
6. To appoint its nominees for work committee
7. To appear before any proceedings on behalf of the employee

 Code of conduct of Trade unions

The four Central Labour Organisation (the INTUC, the AITUC, the HMS and the UTUC),
voluntarily adopted an inter-union ‘Code of conduct’ on May 21, 1958, to observe the basic
principles for the maintenance of harmonious inter-union relations.

a. Every employee in industry or unit shall have the freedom and right to join a union of his
choice. No coercion shall be exercised in this matter.
b. There shall be no dual membership of unions
c. There shall be unreserved acceptance of and respect for, the democratic functioning of
trade unions
d. There shall be regular and democratic elections of executive bodies
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e. Ignorance and/or backwardness of workers shall not be exploited by any organisation. No

organisation shall make excessive or extravagant demands.
f. Casteism and communalism shall be eschewed (avoided) by all unions
g. There shall be no violence, coercion, intimidation or personal vilification (Back biting/
Criticism) in inter-union dealings
h. All Central unions shall combat (fight) the formation or continuance of company unions.
i. There should be no lockout or strike without notice
j. No unilateral action should be taken in connection of any Industrial Matter
k. No deliberate damage should be caused to plant or property
l. Utilization of existing dispute machinery for settlement
m. Speedy implementation of awards and agreements
n. Agreements disturbing I.R should avoided
It was accepted by INTUC, HMS, AITUC, & UTUC – worker unions and Employers’
association of All India organization of Industrial Employers & All India Manufactures
Organization.

Objectives of the Code of Conduct:

1. To ensure that both parties recognize the rights and obligations
2. To promote constructive cooperation
3. To secure settlement of disputes
4. To eliminate all form of violence
5. To avoid work stoppages
6. To facilitate free growth of Trade Unions
7. To maintain discipline in industry

 History/ Growth and Development of the Trade Union Movement

1. Social Welfare period, from 1875 to 1918
 The development of industries led to large-scale production on the one hand and social
evils like employment and exploitation of women and child labour and the unacceptable
working conditions, the government’s attitude on the other hand. During this period, the
conditions of labour in Indian factories were worse. When the conditions became too
distasteful and the remedy was not given, they migrated to other industrial centers or
went back to villages. There was not attempt at collective bargaining or at obtaining
redress through concerted (strong) action.
 The Indian humanitarians, like Sorabjee Shapurji Bengali (1875) and N.M. Lokhanday
(1884) were factory workers, drew attention of the government towards the unhappy
working conditions of the labourers and demanded an early legislation to protect their
interest. Accordingly, the Indian Factories Act was passed in 1881, and then amended in
1891 and 1911. These Acts introduced some improvements in regard to shorter hours,
and conditions of work for children and women labour.
 The Memorial demanded: A complete day of rest every Saturday; Half an hour’s rest at
noon; working hours no longer than 6.30p.m.; the payment of wage not later than the 15 th
of the month; payment to injured workers, etc.
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 The mill owners agreed to grant a weekly holiday to workers. Encouraged by this
success, Bombay Millhands Association was formed in 1890 by N.M.Lakhanday. The
purpose was to provide a clearing house for the grievances of mill workers and to help in
drawing public attention to cause of labour. This was the first union in India which
earned for its founder the title of being the “First Trade Unionist”.
 In subsequent years a number of unions were formed, such as; the Amalgamated Society
of Railway Servants of India and Burma, The Printers’ Union of Calcutta, 1905; the
Bombay Postal Union, as Calcutta and Madras, 1907; the Kamgar Hitwardha Sabha,
1909; and the Social Service League, 1910. The objectives of these associations were to
promote welfare activities, spread literacy among the factory workers and redressed
grievances. Most of the Union leaders are Social workers.

2. Early Trade Union period, from 1918 to 1924

 The year 1918 was an important one for the Indian trade union movement, when the
leadership of the trade unions was to pass from the hands of the social workers into the
hands of the politicians.
 About this time, many unions were formed, such as the Indian Seamen’s Union both at
Calcutta and Mumbai, the Punjab Press Employees Association, The G.I.P Railway
Workers’ Union, Bombay, M.S.M. Railwaymen’s Union, Madras, the Madras Textile
Labour Union, the Postmen and Prot Trust Employees’ Union at Bombay and Calcutta,
The Jamshedpur Labour Association, The Indian Colliery Employees’ Association of
Jharia, and the unions of employees of various railways.
 The Madras Textile Union was the first union in the modern sense, which was formed in
1918 by B.P.Wadia. Three factors were responsible for its formation: (i) extremely short
interval for mid-day, (ii) frequent assault on workers by the European assistants, and (iii)
inadequate wages. This union adopted collective bargaining and used trade unionism as a
weapon for class-struggle.
 On October 30, 1920, representatives of 64 trade unions with a membership of 1,40,854,
met in Bombay and established the All India Trade Union Congress under the
Chairmanship of Lala Lajpat Rai.
 In this Era, A majority of the unions of mine, jute and cotton textile workers were loose
with very little continuity, formed for some temporary and immediate purpose such as
getting enhanced wages and most of them were strike committees which liquidated as
soon as their demands were met. It is estimated that 75% of the unions formed during the
period died in the subsequent period when trade unions activity was at low.

3. Left-wing Trade Unionism period, from 1924 to 1934

 In 1924, a violent and long-drawn out strike by unions led to the arrest, prosecution,
conviction and imprisonment of many communist leaders. The AITUC emerged as the
sole representative of the Indian working class. By 1927 it united 57 unions with a
membership of 1,50,55. The rapid growth of trade unionism was facilitated by several
factors, such as; (i) the growth of national movement; (ii) the brutal violence and
repressive measures let loose by the British government, particularly the Jallianwala
Bagh massacre (mass murder), Rowlet Act, indiscriminate arrests and imprisonment of
national leaders and Satyagrahis; (iii) the phenomenal profits earned by the capitalists,
etc.
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 During 1928, a large number of strikes, led to man-days lost totaled to 316 lakhs. The
communists regained their influence in the trade union. There was two distinct parties
grew in the movement of Meerut Conspiracy called by some as the ‘Rightists’ and
Leftists’. These communist parties opposed militant action, social strikes and demanded
that trade unions should concern more with economic issues rather than political actions.
Based on this conflict, the representatives of 24 affiliated unions seceded from the
AITUC. They formed a separate union – the All India Trade Union Federation (AITUF).
By 1930, 104 unions were registered with a total membership 2.42 lakhs. In 1931, there
was another rift in the AITUC at the Calcutta session due to the fundamental differences
between the communists and the left wing unionists. The Communists led by
B.T,Ranadive and S.V.Deshpande, formed the Red Trade Union Congress (RTUC).

4. Trade Unions’ Unity period from 1935 to 1938

 In mid-thirties, the state of divided labour movement was natural thought undesirable and
soon after the first split, attempts at trade union unity began. In 1932, Railwaymen’s
Federation formed a committee called, Trade union unity committee with the objective of
“Creating platform for unity”.
 The one important development of this period was that through the efforts of V.V.Giri,
the path to unity was paved in 1938 in Nagpur when the AITUC finally decided to accept
the conditions of merger as laid down by the NTUF (National Trade Union Federation).

5. Second World War period from 1939 to 1945

 The Second World war, which broke out in September 1939, created new strains in the
united trade union movement. A large group of trade unionists led by the members of te
Radical Democratic Party was of the opinion that the AITUC should support and
participate in the anti-fascist war irrespective of the acts of omission and commission of
the British government. A large number (Supported by S.C.Bose) were opposed to that
view.
 Hence, again a rift (split) took place in 1941 and the radicals (Fundamentalists) left the
AITUC and formed a new central federation known as the Indian Federation of Labour.
In 1942, this Federation was recognised by the government as an organ representing
Indian labour class.
 During the war time certain factors helped to enhance the status of the trade unions in the
country, namely, (i) The government as well as employers launched a number of labour
welfare measures with a view to increase production of war materials and other essential
goods. (ii) Recognition to Trade unions was accorded by many employers. (iii) Ban on
strikes and lockouts (iv) A Tripartite Labour Conference was convened in 1942, for first
time, to provide a common platform for discussion and mutual understanding between
the labour and the employers.
 Great qualitative change that had take place in Indian Trade union activities.

6. Post – independence period from 1947 to date of Trade Unions in India

 AITUC separated from the organisation and established the Indian National Trade Union
Congress (INTUC).
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 There was again a rift in the AITUC in 1970, when the Communist divided themselves
into the CPI and the CPM. The AITUC came under the control of the CPI and the CPM
formed a new central organisation called the Centre of Indian Trade Union (CITU).
 The Hindustan Mazdoor Sevak Sangh convened a conference in New Delhi on May 3 &
4, 1947. A resolution was adopted to set-up another central organisation. The INTUC was
formed by Hindustan Mazdoor Sevak Sangh (HMS).
 A group of left-wing trade unionists dissatisfied with the attitude of the majority of
socialist party, who had influence in the HMS, formed yet another organisation, United
Trade Union Congress (UTUC) in 1949, aimed to conduct trade union activity on the
broadest possible basis of trade union unity, free from politics.