KARNAVATI UNIVERSITY UNITED WORLD SCHOOL OF LAW

ACADEMIC YEAR 2023-24

LABOUR LAW I

DEVELOPMENT OF TRADE UNION IN INDIA

Submitted To: Submitted By:

Dr. Pranay Prakash Prithish Dekavadia

Unitedworld School of Law Semester 5

Karnavati University Section B

Gandhinagar 20210401047

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 Table of Contents

ABSTRACT................................................................................................................................................3

INTRODUCTION.......................................................................................................................................4

What Are Trade Unions...........................................................................................................................4

Law and Amendments.............................................................................................................................5

Growth of Labour Union In India................................................................................................................6

Pre 1918: The origins of the Indian labour movement............................................................................6

1918–1924: The first wave of trade unionization....................................................................................7

1925 – 1938 The momentary halt in Congress........................................................................................8

1939–1946: A time of labour movement.................................................................................................8

1947–present Trade unionism following independence..........................................................................9

Challenges Faced By Trade Unions..........................................................................................................10

Conclusion.................................................................................................................................................10

References..................................................................................................................................................11

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 ABSTRACT

A trade union, sometimes known as a labor union, is a group of employees that have united to

establish a cartel of labor and fight for shared objectives in important areas including pay, hours, and

working conditions. The country with the most trade unions is India. They have, however, advanced

extremely slowly. Despite the gradual expansion, the unions brought about considerable improvement of

the workers' social, political, and economic conditions. They have made a positive financial impact on

the workers' situation. Politically, unionism has given rise to a powerful secular opposition to capitalism,

imperialism, equality, and socialism power of the country's economy.

A range of sectors have not been impacted by trade unionism. The extent of unionization varies

greatly throughout industries. Even while trade unions come in a variety of sizes and have thousands of

members, the majority of unions are still tiny in both size and membership. The majority of Indian

workers are impoverished, uneducated, and uninformed. The following issues arise from the dishonest

trade union leaders' exploitation of them. Trade unionism's political impact is unavoidable in

democracies. In this research paper, we will examine how the challenges faced by trade unions in the

twenty-first century have resulted in a historical evolution of the movement that was inextricably linked

to political movement via liberation fight in India.

Further this study talks about the historical development of trade union in India and evolution of

the trade union in India through 6 different phases. This study also provides analysis of what a trade

union is and the problems faced by trade unions in different phases.

Key words - Organization; Common goals; Democracy; Liberation struggle; Trade unions

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 INTRODUCTION

It follows that during the industrial revolution in the UK, which began in the eighteenth century

and quickly spread across Europe and other parts of the world, many trade unions were created. There

were the large scale factories, new techniques of mass production, machine revolution, and rapid

industrial development marked the industrial revolution. Obviously, the creation and opening of much

factories would inevitably create labor force shortages. As a result, the demand for both qualified and

non-qualified labour increased. The working class had no resources and did not know then; hence, they

were exploitated. The workers initially thought that their employers used unfair terms and conditions as

well as inadequate payment, which was readily replaceable with more money that the employees

needed. Initially, the working class realised that one individual could not claim against the injustice

nature of working conditions in the industry but eventually, they discovered that a group comprising of

several people who were termed as union could make an impact against the injustice nature of working

conditions within the industry Unions enabled workers to have a collective bargaining power to fight for

their own interest. Therefore, this idea resulted in establishment of trade unions.

What Are Trade Unions

An organised group of workers in a trade or profession who came together to advance their rights

and interests is known as a trade union. The Trade Union Act of 1926 governs the registration of trade

unions in India. Trade unions care about their members' social and economic well-being. Political

objectives in the greater community may also be pursued by labour unions.

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 Law and Amendments

The evolution of trade unions in India is heavily impacted by labour laws. The development of

social justice is the central tenet of Indian labour law. The International workers Organization's

establishment to enhance the standing of workers globally further fueled the need for properly

constructed labour laws in the country. Other internal forces, such the Royal Commission on Labour and

the Swaraj movement of 1921–1924, also paved the way for a number of labour laws and convinced the

drafters of the constitution to include provisions that will help workers. According to the Indian

Constitution, labour is a concurrent list topic, which means that both the federal government and the

states have the power to enact legislation on the subject.

One of the most important contributing factors to labourers' exploitation is their incapacity to

negotiate, particularly for those employed in the unorganised industries. They are the only legally

recognised trade unions with the ability to engage in collective bargaining. While there isn't a single law

in India that governs union registration, there is legislation that deals with union recognition. Parliament

approved the Indian Trade Union (Amendment) Act in 1947 as it became evident that union registration

required centralised regulation. The aforementioned Act sought to amend the Trade Union Act, 1926 by

adding Chapter III-A, which enumerated the requirements for any trade union to be recognised by law.

On the other hand, this Act was never implemented.

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 Growth of Labour Union In India

The Indian trade union movement grew naturally over time. It began in the latter part of the

1800s and is still going strong today. It closely tracks India's industrial progress.

Pre 1918: The origins of the Indian labour movement

The establishment of jute and textile mills, along with the construction of railroads, in the 1850s

led to the revelation of labour abuses. While labour movements had their roots in the 1860s, the first

labour protest in Indian history took place in Bombay in 1875. S. S. Bengalee led the organisation that

was put together. It focused on the predicament of labourers, particularly women and children. As a

result, the first Factory Commission was appointed in 1875. As a result, in 1881, the first Factories Act

was established.

M.N. Lokhande founded the Bombay Mill Hands Association in 1890. In India, this was the country's

first formal labour union.

Characteristics of the current labour movements:

1) Rather than the workers themselves, social reformers gave the leadership.

2) Rather of focusing on defending workers' rights, the movements of this era primarily addressed

their welfare.

3) They lacked a pan-India presence, despite being organised.

4) There was not a clear intellectual goal or basis.

5) Their demands mostly concerned women's and children's rights in the workplace.

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 1918–1924: The first wave of trade unionization

In India, the actual trade union movement began at this time. It was set up similarly to how

unions functioned in the industrialised world. Workers were more aware of their class as a result of the

First World War's worsening living conditions and more exposure to the outside world. This gave the

movement a good foundation on which to grow. The early trade union period is the name given to this

time frame. Notable unions include the Madras Labour Union, which is directed by B.P. Wadia, the All

India Postal and RMS Association, the Ahmedabad Textile Labour Association (1917), and others.

The earliest Indian trade union organisation, AITUC, was founded in 1920. Lala Lajpat Rai,

Joseph Baptista, N.M. Joshi, and Diwan Chaman Lall formed it. The AITUC chose Lajpat Rai as its first

president.

Factors for the Growth in this period –

1) Poor living conditions resulted from the War's price spiral and the subsequent mass ensnaring

of labour. Worse than that, their miserable working circumstances made matters worse. As a

result, they looked to unionisation for collective negotiating power.

2) Their morale was raised by the Russian Revolution and other global events, such as the

founding of the International Labour Organisation in 1919.

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 1925 – 1938 The momentary halt in Congress

There was a stronger sense of togetherness between various unions throughout this time. By

1937, the Indian National Congress had taken control of most of the provinces. As a result, an increasing

number of unions came out and joined the nationalist cause. AIRTUC and AITUC amalgamated in

1935. Provincial governments established several laws that granted labour unions greater authority and

legitimacy.

Congress ministries adopted a strategy of safeguarding industrial peace while advancing worker

interests. The goal was to achieve labor-capital reconciliation, with ministries vying for increased wages

and improved living standards. Strikes, however, were viewed as law and order problems by several

ministries. They suppressed it with colonial apparatus. The unions became quite resentful as a result.

The trade union movement also found favour with the administration. Its expansion was aided by

laws such as the Trade Unions Act of 1926 and the Trade Disputes Act of 1929. It gave the unions a lot

of privileges in exchange for a lot of responsibilities. This was a time when the left was in power. As

such, it may be called the left-wing trade unionism era.

1939–1946: A time of labour movement

The workers' quality of life was severely reduced during World War II, which strengthened the

movement. A breach developed between the Congress and the Communists over the war effort. This

caused the movement to become even more divided, in addition to other problems. However, the

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compounding problems made the movement stronger overall. This includes 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 and the Industrial Employment Act of 1946. The movements became increasingly loud and active in

the national movement overall.

1947–present Trade unionism following independence

It was characterised by the rise in union membership. Under the direction of Sardar Vallabhbhai

Patel, INTUC was established in May 1947. Since then, Communists have grown to rule the AITUC. In

1948, the Praja Socialist Party sponsored the formation of the Hind Mazdoor Sabha. Later on, socialists

began to have an impact on it. Founded in 1955, Bharatiya Mazdoor Sangh is presently associated with

the Bharatiya Janata Party.

Unions and party politics grew more intertwined after independence. Due to the fact that every

regional party has chosen to establish its own trade union, there is an abundance of these parties.

Nonetheless, with the liberalisation that occurred after 1991, their power has slightly decreased.

Following its independence, India has also seen the convergence of several unions to tackle

shared problems. These include the devastating 1974 railway strike and the 1982 Great Bombay textile

strike. However, after 1991, it seems that popular support for these strikes has decreased. Additionally,

informal labour is receiving more attention. This is because unorganised labour is in a particularly

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vulnerable position. The unorganised sector has contributed more members to all of the main labour

unions.

Challenges Faced By Trade Unions

Post-Independence Challenges -

1) Poor organisational design

2) Uncertainty in addressing different labour union issues

3) Decreasing bargaining power as a result of management's neglect of its labour objectives and

issues

4) Reduction in the power of collective bargaining as a result of similar factions

The labour unions are unable to effectively advocate for better working conditions and greater salaries

as a result of their failure to come together. There is always a chance that a more favoured group would

receive union recognition before more respectable unions.

Conclusion

Over time, trade unionism in India has changed to meet the demands and overcome obstacles

encountered by the workforce. Trade unions have contributed significantly to the growth of the country,

particularly in the social and industrial spheres. To combat the widening wealth gap, uphold labour

standards, protect workers' interests, and encourage the adoption of moral corporate practises, a strong

and resilient trade union is necessary.

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 While it was long overdue to change numerous labour regulations, in order to achieve quicker

growth, it is imperative to strike a balance between the interests of investors and worker welfare. In

order to determine future policy choices, all parties involved in these expansive labour regulations must

engage in more thoughtful discussion. This would put India on a growth trajectory driven by

manufacturing that is on par with the best in the world, resulting in true self-reliance and a boost to the

Made in India initiative.

References

 Trade Union situation in India: Views of Central Trade Union Organisations (CTUOs) on

JSTOR. (n.d.). www.jstor.org. https://www.jstor.org/stable/27767744

 The impact of globalization on the trade union movement in India. (2017).

https://www.indianjournals.com/ijor.aspx?target=ijor:ijrss&volume=7&issue=4&article=017

 Mehta, A. (1957). The mediating role of the trade union in underdeveloped countries.

Economic Development and Cultural Change, 6(1), 16–23. https://doi.org/10.1086/449751

 Ibsen, Christian Lyhne, and Maite Tapia. “Trade Union Revitalization: Where Are We Now?

Where to Next?” Journal of Industrial Relations, vol. 59, no. 2, 24 Feb. 2017, pp. 170–191,

https://doi.org/10.1177/0022185616677558.

 Peter, and Peter Haynes. “Strategy and Trade Union Effectiveness in a Neo‐Liberal

Environment.” British Journal of Industrial Relations, vol. 35, no. 4, Dec. 1997, pp. 567–591,

 Politics and trade unions in India on JSTOR. (n.d.). www.jstor.org.

https://www.jstor.org/stable/3024018

 Rathore, G. S. (2023, May 5). Evolution of trade union in India. TaxGuru.

https://taxguru.in/corporate-law/evolution-trade-union-india.html

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