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Trade Union Legislation of India

Last Updated : 26 Sep, 2022
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In a democracy, each citizen is free to protect his/her social rights; the same is stated in the constitution of India. But in many cases, it has been observed that powerful industrialists exploit the social rights of poor laborers. Thus, to provide equal protection to workers’ and industrialists’ social rights, many trade unions were formed in India. A trade union not only protects the workers from being exploited but also a trade union becomes the voice of workers to help them get their problems solved.

What is a Trade Union and how it Started in India?

A trade union in India can be simply referred to as a group of people working together in the same profession, formed to protect their rights and interests. In India Trade Unions are legally recognized by the Government of India under the Trade Union Act of 1926. Trade unions are also referred to as labor unions but the trade unions work for the social and economic welfare of the workers, while the labor union can also have a political interest. The first labor union was formed in 1918, in India named as Madras Labour Union which was further legalized by the British government under the Trade Union Act of 1926. 

Journey of Trade Unions in India:

The beginning of the labor movement in India (Early 1918):

In the early 1850s, railway lines started spreading across India and the cotton and jute mills began were just started. It was 1860 when the labor movement was first ever initiated in India, that came to light in 1875. SS Bengalee was the first to initiate the labor movement in India for the betterment of women and children and this led to the enaction of the first factory act in 1881. Soon after that, in 1890, the first organized labor union was formed in India by M N Lokhande, named Bombay Mills Hand Association.

The Initial phase of Labor Unions in India (1918-1924):

The beginning of trade unions in India in real terms was between the years 1918-1924. It was the first time that laborers which different regions of India united and this led to the formation of various trade unions across India. The world was suffering losses due to World War I and it also provided an opportunity for the workers of India to bold their voices and improve their position in society. During this period a variety of trade unions were formed like Ahmedabad Textile Labour Association, Madras Labour union, All India Postal and RMS Association, and AITUC. Out of which the AITUC is one of the oldest trade unions formed in 1920. 

The era of left-wing trade unionism (1925-1934):

This period in the history of trade unions marks the dominance of the left is responsible for the legislation of the Trade Unions Act, 1926, and the Trade Disputes Act, 1929. N.M Joshi and V.V Giri were the main activists that came up with a revolutionary approach and integrated mainstream nationalists to legalize the trade unions in India. But on the other hand, this era also marked increased militancy and the splitting of old trade unions. Like one of the oldest trade unions, AITUC split into All India Red Trade Union Congress (AIRTUC) and National Trade Union Federation (NTUF).

The entry of congress into the labor movement (1935-1938):

During 1935-1938, congress made an entry into the ongoing labor movement, during this time congress was in power in most of the provinces of India. Thus congress played a key role in uniting different trade unions of India and during this period the AITUC and the All India Red Trade Union Congress (AIRTUC) merged again. The congress’s main aim was to improve the quality of living of the laborers and promote worker interests while protecting industrial peace. But still, labor strikes were not acceptable to the industrialists thus they used colonial machinery to suppress them and it led to a conflict of interest among industrialists and workers.

1939-1946: The period of labor activism:

In1939, the disputes between the communist party and the congress began to increase, which further led to the splitting of many trade unions. However, World war II even worsen the standard of living of workers in India. Thus the movement combinedly got stronger and became an important factor in the legislation of the Industrial Act, of 1946 and the Bombay Industrial Relations Act, of 1946.

Post-Independence trade unionism, 1947:

After the independence, the existing trade unions of India got stronger, and also many new trade unions were formed. One such trade union was formed in 1947 by Sardar Vallabh Bhai Patel named INTUC. However, after the independence, most of the trade unions got affiliated with major political parties. For example, Bhartiya mazdoor sang was formed in 1955 and is presently afflicted with BJP (Bhartiya Janta Party).

Advantages of Trade Unions in Industries:

  • Trade unions protect the social and economic rights of laborers working in industries.
  • It helps in improving the work quality of workers as they get paid well due to labor laws.
  • Trade unions make sure that no worker shall be discriminated against on the basis of caste, creed, or religion, thus providing equal employment opportunities.
  • Trade unions help in improving the living standards of the laborers and workers. 
  • Trade unions also make sure that no laborer is exploited by the industrialists.

Challenges faced by Trade Unions Post-Independence:

  • Post-independence it has been observed that fewer people are taking part in trade unions. Thus the presence of the trade unions is slightly wiped off. 
  • The politicization of almost all major trade unions is also the main reason for people less participating in trade unions.
  • Due to politicization, there is a conflict of interest among all the trade unions and thus are getting less united.
  • Due to weak economic progress, many people agreed to work on lower wages, thus allowing industrialists to ignore trade unions and move ahead.
  • The financial position of the trade unions also got weaker after the independence as no organization was ready to fund them. 

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