Brief Context
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.
Source Content
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