TRADE UNIONS

NEWS: Worker protests over wages and social security have revived debate on weakening trade unions

Evolution

• Origins → Post Factories Act (1881)
• All India Trade Union Congress (1920) + Trade Unions Act, 1926 → formalisation
• 1950s–70s → Peak (strong public sector + bargaining power)
• 1974 Railway Strike → major labour assertion
• 1980s → Decline begins (Bombay Textile Strike, 1982)

Extent of Decline (De-unionisation)

• Unionisation → ~6.3% workforce (private sector ~1.8%)
• Informal sector → ~90% → weak union reach
• LPG reforms → ↓ PSU jobs → ↓ union base
• Industrial Relations Code, 2020 → 10%/100 worker rule limits new unions

Constitutional & Legal Basis

• Article 19(1)(c) → Right to form unions (with restrictions)
• IR Code, 2020 → regulates formation + recognition

Role of Trade Unions

• Collective bargaining → wages + conditions
• Policy role → tripartite negotiations
• Worker protection → rights + social security
• Representation → protests + advocacy

Reasons for Decline

• Informalisation + contract labour ↑
• Privatisation + PSU decline
• Weak enforcement of labour laws
• Fragmented labour force

Way Forward / Measures

• Expand coverage → gig + informal workers
• Strengthen labour law enforcement
• Improve collective bargaining institutions
• Ratify ILO conventions
• Promote formal jobs → manufacturing + schemes

Conclusion

• Trade unions → still vital, but need reform + expansion to stay relevant in changing labour market.