Weakening of Trade Unions in India

Syllabus: GS2/Polity and Governance

Context

• In the background of a number of protests for minimum wages; expansion of the social security ambit; and against the contractualisation of jobs, the role of trade unions have come up for discussion.

Trade Unions

• Trade Unions are voluntary organizations of Workers as well as Employers formed to protect and promote the interest of their members. 
• They are the most suitable organizations for balancing and improving the relations between the employer and the employees. 
• The workers come together to maintain and improve their bargaining power on wages and working conditions. 
• The first organized Trade Union in India named as the Madras Labour Union was formed in the year 1918. 
• 1926: Enactment of Trade Unions Act 1926 (legal recognition).
• Major Trade Union Organizations are: 
  • Indian National Trade Union Congress;
  • Mazdoor Sangh;
  • Centre of Indian Trade Unions;
  • Hind Mazdoor Sabha.

Role of Trade Unions

• Collective Bargaining: Negotiate wages, bonuses, and service conditions with employers.
• Protection of Workers’ Rights: Safeguard against unfair dismissal, exploitation, and wage cuts.
• Dispute Resolution: Act as mediator between workers and management to prevent strikes/lockouts.
• Welfare Activities: Provide support in health, education, housing, and social security.
• Awareness & Education: Educate workers about rights, laws, and responsibilities.
• Policy Advocacy: Influence labour laws and government policies.
• Mobilization: Organize protests, strikes, and movements when needed.
• Facilitating Communication: Bridge gap between management and labour.

Recent Concerns

• Declining Bargaining Power: Before 1991, unions had relatively better bargaining power, mainly in the public sector.
  • Post-liberalisation, mainstream trade unions gradually suffered from declining bargaining power as the labour market became predominantly informal.
• Fragmentation & Multiplicity: Existence of multiple unions within the same industry or enterprise leads to inter-union rivalry and weak bargaining power.
• Political Interference: Many unions are affiliated with political parties which at times diverts focus from worker welfare to political agendas.
• Limited Reach in New Economy: Poor representation of gig workers, platform workers, and freelancers leads to difficulty in organizing workers in dispersed and digital workplaces.
• Low Awareness Among Workers: Workers, especially migrants and informal labourers are often unaware of rights which limit union membership and participation.

Constitutional Safeguards related to Trade Unions

• Fundamental Right:Article 19(1)(c) guarantees the right to form associations or unions. However, this right is not absolute, Article 19(4) allows reasonable restrictions in the interest of: Public order, Morality, Sovereignty and integrity of India.
  • The Constitution does not guarantee the right to strike, The Supreme Court has clarified that the right to form unions is not the right to strike.
• Directive Principles of State Policy (DPSPs) guide the State in labour welfare:
  • Article 38: Promote social order based on justice.
  • Article 39: Ensure adequate livelihood and prevent exploitation.
  • Article 41: Right to work, education, and public assistance.
  • Article 42: Just and humane working conditions, maternity relief.
  • Article 43: Living wage and decent standard of life.
  • Article 43A: Participation of workers in management of industries.

Way Forward

• The government should prioritise expanding unionization in informal and gig sectors.
• Strengthen legal framework for worker protection.
• Encourage social dialogue between government, employers, and workers.

Source: TH