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Trade Unions in India: Fact and Figure

Pravin Sinha

India is the world’s largest democracy and is located in southern region of Asia. On 15 August 1947 it secure independence from 200 years of British Colonial rule. According to its constitution, adopted on 26th November 1949 and made effective from 26th January 1950, India, a union of states, is a Sovereign Socialist Secular Democratic Republic with a parliamentary system of government. As of now India comprises of twenty-eight states and seven Union Territories.

The 2001 Census states that 39.25 percent of 1.025 billion population constitute India’s workforce. This implies that about 60 per cent fall in the category of dependent population. Of the working population 77 per cent are located in rural India. Further the female workforce participation amount to 31 per cent most of whom are employed in the informal sector. The Census has also classified workers into main workers and marginal workers. Main workers are those workers who work for 183 or more days while those who work for less than 183 days are defined as marginal workers. Accordingly, 78 percent of the total workforce main workers and about 22 per cent were marginal workers as against 91 and 9 percent in 1991, clearly showing a shift towards causalisation of workers’ status.

The New Economic Policy of 1991 reversed the tilt from the public sector to private sector. The policy introduced substantial programme for de-regulation, such as abolition of licensing requirements for all items except seven industries related to security, strategic or environmental concerns. India has, by now, gone through more than a decade of economic reforms. Beginning in June 1991, the thrust of the reform was fiscal stabilization and initiation of major structural reforms aimed at deregulation of the economy  to induce accelerated investment, growth, employment and hence reduction in poverty. GDP growth in 1990s, after initial year of reforms, was higher than those achieved in 1980s. During the subsequent years, the GDP however slowed down. Growth in industrial value added averaged 8.5% per year during 1993-4 to 1996-7. The same fell to 4.8% per year during 1997-8 to 2000-01. Similarly, the annual average growth in value added in agriculture and allied sector fell down from 4.5% to 1.2 per cent during the same period. Growth in the infrastructure also came down during the period under reference.

The main characteristics of the Indian workforce include illiterate, low skilled, low productivity and migratory in nature. The workforce could be grouped into two-sub heading, i.e. workers whose employment relation is identifiable and the other whose employment relation is not identifiable. The first group constitutes the formal or organized sector while the other is informal or unorganized sector.

Origin of Trade Unions in India:

Trade Unions consider themselves as the sole representatives of the working class in India. In the performance of its role, the unions endeavour to protect and promote the working class interests. The initial initiatives to organize workers in India dates back to 1817 when a British entrepreneur setup first textile mill in Howrah. Subsequently, the tea/coffee plantations were established, so also railways and jute industries. In 1881 the first Factory Act was enacted and in 1891 the same was amended to enlarge its applicability. Near about the same period India witnessed the entry of trade unionism, as we understand today, to represent the concerns of the industrial workforce.

The Indian Trade Union Act of 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relation between workmen and employers or between workmen and workmen, or between employers and employers or for imposing restrictive conditions on the conducts of any trade or business, and includes any federation of two or more unions. Since then the Act has undergone a number of minor amendments but the overall framework of the Act has remained unaltered. According to the Act any group of seven persons could form a union. There are, however, discussions to bring in amendment to raise the number to 100 or 10 per cent of the employees as minimum required for the registration of a trade union.

Growth of Trade Union Movement in India:

The Indian Trade Union Movement [ITUM] held its Centenary Celebrations in 1992. During the celebration, the labour leaders narrated in great length, contributions made by them and the ITUM in the freedom struggle of India. Many of them have, further, been glorifying their contributions in securing trade union rights and other benefits for workers. However, the ground realities show that in the years following India’s independence, the ITUM membership has remained stagnant, if not declining. Its activities have been more or less confined to organized sector, more so to the public sector enterprises [PSEs] – from where over 70 per cent of its membership is drawn.

By the year 1994 only 8.0 per cent of the total workforce constitute parted of the organized sector where as the unorganized sector account for 92.0 per cent. Agriculture and allied occupation is the single largest employer of the Indian workforce, about 99.2% of which are in the unorganized sector. In the manufacturing sector also the workers in the unorganized sector account for almost 75% of the workforce. Similarly, the 98% of the workers in trade and commerce belong to the unorganized sector. The share of the organized sector by 2003 had declined to 7 per cent.

With the opening of media sector a large number of private companies have come in electronic and print media. The televisions are filled with large number of channels pouring in programmes of one or the other nature. It was the State owned Delhi Doordarshan [DD] but now we have the StarTV, AajTak, NDTV, HBO, Discovery, Cartoons, MTV, Zoom, and whatnot. The private radios too have come in a big way. Radio Mirchi, Rainbow, Radio City, are a few which have revived the public’s interests in radio listening. The stakes are higher in the case of film and TV but then it is not as organized as radio sector. Job contracting, time selling, etc. are common which in turn has given mushrooming of production houses. The epicenter of production house was Mumbai but now they are in practically all cities producing programmes in thousands if not more. In the glitter of this industry the pains of junior artist, technicians and young workers are over looked. Young workers most of whom have no written contract and work for fourteen to eighteen hours for seven days a week in the film and TV industry.

The prevailing conditions have led to development of duel labour market situations. The workers in the Organized Sector are fully protected through coverage by the labour laws. Incidentally, majority of the workforce are employed in the government owned establishments. The labour in the unorganized sector is deprived of the benefits accruable under the various laws, primarily due to informal nature of employment. Consequently, they face exploitation of various kinds both at work and home. Women workers are the worst sufferer of this exploitation. Further, it is in this sector that one observes incidences of child labour.

Since the focus of ITUM was the workers in the organized sector, more so those employed in the government owned establishments, the concerns mass of workforce engaged in the unorganized sector has remained out of ITUM’s focus. Consequently, over 90 per cent of the workforce remained unaware of their rights as workers and as such were being exploited by their employers. Most of the times the worker are not even aware of the employer's excesses. Long working hours, under payment, sexual abuse, physical confinement are day-to-day affaires. The workers take these actions of their employer as fate [and rights in the case of employer]. On the other hand the workers in the organized sector has been able to secure comparatively a better status and higher standard of living due to effective enforcement of labour laws.

The Constitution of India has placed Labour in its Concurrent List, thereby empowering, both, the Central and the State governments to enact laws relating to labour. In the following large number of laws having relevance to labour were enacted. As of now there are over two hundred laws that have direct relevance to labour of which 56 are enacted by the Central Government. The laws practically take care of all the issues of the concerns of labour. The labour laws, further, do not make any distinction between the organized and unorganized sector, yet the resources of the government and trade unions were directed towards this section of workforce. Interestingly, this section of the workforce is already well protected. It is this condition of excessive protection that deters the possible investors to enter the Indian market. The ground realities are, however, different since most of the laws remain good in paper, more so for those employment in the informal sector. The real exploitation of the worker and his/her family takes place in the unorganized sector where unions are conspicuously absent.

Of recent, the international pressure as also the shift of workforce from organized sector, have generated renewed interests on the plight of workers in the unorganized sector. The government has repeatedly made announcement about its intention to focus its activities towards workers in the unorganized sector. In this connection a National Commission on Labour was set up by the NDA Government with object to suggest umbrella legislation for the workers in the unorganized sector as also to simplify those laws that concerns the workers in the organized sector. The Commission has since submitted its report but there is little of significance that the governments has done, excepting floating Social Security Number on a pilot project basis. The UPA Government has recently constituted another Commission to look into the issue of revival of the Small Scale Sector as an instrument for the generation of additional employment opportunities.

The trade unions too are now trying to penetrate the unorganized sector. There are some signs of workers having been organized in beedi, construction, fisheries, forestry, home based work, etc. industries. Efforts to organize junior artists, technicians, cameramen, etc. in the Indian film industry are also being made at Mumbai, Bangalore, Hyderabad and Chennai. However, enrolling of a worker as a member of union can't be a sufficient indictor of workers’ concerns being addressed effectively. There is need to realize that the conditions in the unorganized sector is different then the ones existing in the organized sector as such one ought not do the mistake of using same tools.

The latest verified figure on the membership of Central Trade Unions on December 1989 as declared in July 1994 by the Government of India. Accordingly five of the Central Trade Union Organizations [CTUO] have been accorded recognition of being national centres of trade unions. These are, the BMS  with verified membership of 31,17,324 tops the list followed by INTUC  [27,06,451], CITU  [17,98,093], HMS  [14,77,472] and AITUC  [9,23 ,517]. In addition there are a large number of non-affiliated / independent unions functional particularly in the unorganized sector and private / joint venture companies. Then there are other forms of workers organizations, such as Morcha, labour cooperatives, NGOs, etc. performing the role of promoting workers welfare.

Characteristic features of ITUM:

During over a century of its existence, the trade unions in India have grown in size and strength. This is inspite of the fact they their membership account for no more than 2 percent of the Indian Workforce. As of now the trade union movement in India comprises of over 70,000 registered unions and an unaccountable number of non-registered organization engaged on the issue of promoting and protecting workers’ interests. The politically affiliated unions have consolidated themselves by establishing a well-developed federal structure. They have established their federations at state and district levels as also industry-wise. One will not be wrong to say that this has been possible due to their closeness with political parties. The non-politically affiliated unions on the other hand are fragmented. Although they are very professional, financially sound as also much effective at the enterprise level, they have not succeeded in developing their federal structure. Their involvement in policy-making bodies is almost negligible.

There exist a mismatch between the locations of trade union’s membership with that of workers. The unorganized sector accounts for about 93 per cent of worker yet the trade unions are almost absent resulting in employers having free hand in exploiting the poor workers in every possible manner. On the other hand the organize sector accounts for merely 7 per cent but is able to attract all the resources of trade unions as also of the governments.

The Indian Trade Union Movement is close to political parties, narrow support base, there is multiplicity of unions, centralized decision making, ad hock management, obsolete strategies, external and over aged leader, personalized and power oriented leadership, confrontationist attitude, non-existent second tier leadership, and negligible gender representation.

In spite of these weaknesses the trade unions occupy significant position in India more so in matter relating to labour policies. They have become more vocal in the current political scenario wherein the UPA Government is in office with the support of the Left Political Parties. Politically practically every political party patronizes the trade unions and therefore they are able secure prompt attention from the government and the employers. At the time of general election the "labour vote" becomes the decisive factor in the victory of party candidate from the industrial constituencies. Economically, it is centred in the growth sector of the economy, i.e. in the key industries such as cement, iron & steel, coal, heavy electricals, transportation, textile, dock, banking, etc. Thus, in India the working class in the organized urban sector exercises political and economic power far in excess of what their number warrant.

In the above scenario one could conclude that the workers in India are protected more in paper than in practice. Their representatives have strong presence in policymaking but pay negligible attention in the implementation of such policies. The trade unions in India have wide coverage but the multiplicity of the unions has been making them less than effective. The old and politically influenced leadership, the top-bottom decision making approach, the government’s passive attitude particularly after the 1991- NEP have jointly caused the trade unions to be marginalized.

The Road Ahead:

The primary function of trade union, from workers' point of view, is to protect and fight against the violation of their legal rights in the light of current norms of fairness, equality and social justice. Unions are also expected to strive continually for a better deal for employees in respect of monetary rewards, working conditions and control over the work situation. The involvement of trade unions in the affairs of the larger community and in social and economic policies at various levels is, no doubt important, but is secondary to their primary responsibility relating protecting and promoting the rights and interests of worker, irrespective of whether they in organized or unorganized sector.