The Historical Journey Of India’s Trade Union Movement

Introduction – Trade Union Movement in India

A trade union is a voluntary organisation of workers in a particular trade, industry, or company and is formed to promote and protect their interests and welfare by collective action. Trade Unions are often classified as the most suitable organisations for balancing and improving the relations between the employer and the employees. They are formed not only to cater to the workers’ demand, but also to inculcate in them a sense of discipline and responsibility.

The Indian trade union movement is often seen as a testament to the enduring struggle for dignity, rights, and equity. Born out of the harsh realities of industrialization and colonial exploitation, the trade unions emerged as a collective voice of the working class, determined to challenge injustice and secure fair treatment. The journey of India’s trade unions highlights the nation’s socio-economic transformations and democratic aspirations. This article traces the historical evolution of the trade union movement from its beginnings in the late 19th century to its role in modern industrial relations, thus highlighting how trade unions have continuously sought to balance power between labour and capital in a changing India.

History of the Trade Union Movement in India

Industrialization around the world resulted in the creation of a large labour force. In the early stages of industrialization, the labour class lacked social cohesion to organise themselves in an orderly manner to fight against the evils of the system in which they found themselves entrapped, not of their choosing but because of the compelling forces of the time. There was exploitation of workers due to various reasons like – State policy of laissez-faire (Let things be; free economy with minimum of State control), the doctrine of freedom of contract, the prevalence of the hire and fire rule, etc.

Originating in Europe, trade unions became popular in many countries during the Industrial Revolution, when the lack of skill necessary to perform most jobs (on account of machines) shifted employment bargaining power almost completely to the employers’ side, causing many workers to be mistreated and underpaid. The trade union movement emerged as a result of growing complexities of economic structure, the growth of class consciousness, and the attainment of common objectives among the working class. Consciousness dawned on the working force that they must unite to improve their conditions.

As noted above, due to a surge in industrial activity in the later part of the 19th century, the population of the working class increased. Since the employers were mainly interested only in profitability, workers were at the mercy of the employers. Slowly, the concept of a union started taking hold in India. The trade unionism in India, however, developed quite slowly as compared to Western nations.

The movement was first led by pure nationalists, social workers, philanthropists, and humanists. While the economic hardships of workers have been present as a latent force, the impetus for the growth of the labour movement is provided by the major political currents, particularly the movement for national independence. The failure of workers’ initial attempts to organize led them to seek the help of philanthropists and social workers who generally came from classes higher in economic and social status.

(I) First Phase (1850–1900)

During the period between 1850 and to 1900’s, the working and living conditions of the labourers were extremely poor, and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition, the wages were also low, and general economic conditions were poor in the industries.

To regulate the working hours and other service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881 (amended in 1891). As a result, the employment of child labour was prohibited. Many strikes took place in the two decades following 1880 in all industrial cities. These strikes taught workers to understand the power of united action, even though there was no union in real terms. Small associations like the Bombay Mill-Hands Association came up by this time (formed by Lokhande). In 1890, mill workers of Bombay associated under the name of the Bombay Mill-hands’ Association. Although it was not a trade union in a strict sense, it was nevertheless a start in India.

(II) Second Phase (1900–1946)

This phase was characterized by the development of organized trade unions and political movements of the working class. The Russian Socialist Revolution under the leadership of Lenin gave hope to Indian workers. The success of the Russian Revolution (1917) created a revolutionary wave of ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among labourers.

Between 1918 and 1923, many unions came into existence in the country. The year 1918 was an important one for the Indian trade union movement. The industrial unrest grew as a result of the great economic difficulties created by the First World War. The rising cost of living prompted the workers to demand reasonable wages, for which purpose they united to take recourse to collective action. The Swaraj movement intensified the movement, widened the gulf between the employers and the employees, and brought about a mass awakening among the workers demanding racial equality with their British employers.

The establishment of the I.L.O. (International Labour Organization) in 1919 gave dignity to the working class and also an opportunity to send a delegation to the annual conference of this body.

The non-cooperative movement of Gandhi during 1920–21 and his support to the demands of industrial labour also greatly influenced the working-class movement. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like the spinners’ unions and the weavers’ unions were formed. A strike was launched by these unions under the leadership of Mahatma Gandhi, who turned it into a Satyagraha. These unions federated into an industrial union known as the Textile Labour Association in 1920. The first trade union federation, AITUC – All India Trade Union Congress, was formed in 1920. Many of the leaders of this organization were leaders of the National Movement.

In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction, and imprisonment of many communist leaders. During 1928, the All India Trade Union Federation (AITUF) was formed.

In the early 20th century, the Royal Trade Commission studied the condition of workers and suggested the formation of Trade Unions. As per the recommendations of the Royal Commission, the Indian Trade Unions Act was passed in 1926. However, due to strong opposition from employers, it was enforced only in 1927. The original Act lacked teeth in the sense that the formation of a Trade Union itself is dependent on the recognition by the employer. Later on, several amendments were made to fix the issues (In 1947, the Act was amended widely as per the socialist inclination of the polity).

During wartime (Second World War), certain factors helped to enhance the status of the trade unions in the country, namely, the government as well as employers launched several labour welfare measures intending to increase production of war materials and other essential goods and maintain high profits. Recognition of trade unions was accorded by many employers. This fact gave moral strength to the unions. A Tripartite Labour Conference was convened in 1942, for the first time, to provide a common platform for discussions and mutual understanding between the labour and the employers.

(III) Third Phase (1947 onwards)

The third phase began with the emergence of independent India (in 1947). The partition of the country affected the trade union movement, particularly in Bengal and Punjab. By 1949, four central trade union organizations were functioning in the country:

The All-India Trade Union Congress
The Indian National Trade Union Congress
The Hindu Mazdoor Sangh (HMS)
The United Trade Union Congress

Several other Unions were later formed.

The working-class movement was, however, politicized along the lines of political parties. For instance, the Indian National Trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors, and managers are also organized by the trade unions, as for example in the Banking, Insurance, and Petroleum industries.

Some of the prominent Trade Unions in the country are:

AITUC gradually went into the hands of Communists. AITUC later fell completely into the hands of the Communist Party of India (CPI) after the communists split in 1964.
Indian National Trade Union Congress (INTUC): Formed in May 1947. Sponsors the policies and ideologies of the Congress party.
Hindu Mazdoor Sabha (HMS): Follows the policies and ideologies of the Janata Party.
Bhartiya Mazdoor Sangh (BMS): Sponsors the ideologies and policies of Bharatiya Janata Party.
United Trade Union Congress (UTUC): Formed by the Revolutionary Socialist Party of India. Sponsors’ policies of the Communist Party (Leninist).
Center of Indian Trade Union: Follows the policies of CPI(M).

The ‘post-independence period’ has been marked by the “trade union movement” in India. The most important factors are:

The constant inflow of outside and international influences,
The pressure of trade union rivalries, often based on political or ideological differences.
Government’s Industrial Relations Policy with its provision for compulsory adjudication machinery;
The enactment of labour laws conferring special privileges on registered trade unions.
The desire of workers to unite for safeguarding their interests, especially to face harder conditions for labour, such as retrenchment, lay-off, etc..
Attempts were made by some employers to set up Unions under their influence.

The Trade Unions Act, 1926

The basic purpose of legislation on trade unions was to provide them with the essential legal basis for organizing workers, bargaining with employers, and conducting trade disputes. Trade union legislation ensures their orderly growth, reduces their multiplicity, and promotes internal democracy in the industrial organisation and the economy. The trade unions have thus acquired an important place in the economic, political, and social setup of the country. The Trade Unions Act, 1926, has been amended from time to time, and the most important being the Trade Unions (Amendment) Act, 2001. This Act was enacted in order to bring more transparency and to provide greater support to trade unionism in India.

The Trade Unions Act, 1926, extended to the whole of India. With the passing of this Act, the fundamental right to ‘freedom of association’ was implicitly recognized, and in that sense organized trade union movement attained legitimacy. Although the Preamble to the Act states that this is “An Act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions”, but looking at the historical development of trade union movement in this country and elsewhere in the world, the main object of the Act was seen to replace individual bargaining by collective bargaining system.

Collective Bargaining is a method by which problems of wages and conditions of employment are resolved amicably, peacefully, and voluntarily between labour and management. It is recognized as a right of social importance, and greater emphasis is placed on it by India’s five-year plans. Yet it is not elevated to the position of a fundamental right to form an association or union under Article 19(1)(c) of the Constitution of India as was held by the Supreme Court of India in the Bank Employees Association v National Industrial Tribunal. The primary purpose of a trade union is collective bargaining [Bank of India Employees’ Association v Reserve Bank of India (1983) 2 LLN 872 (Bom)].

The Trade Unions Act, 1926, was primarily enacted to accord protection (from civil or criminal prosecution) to the union leaders (via registration) for the acts done by them in connection with the legitimate trade union activities. The Act provided recognition and protection for a nascent Indian labour union movement. The Act deals with the registration of trade unions, their rights, their liabilities and responsibilities, as well as ensures that their funds are utilised properly. It gives legal and corporate status to the registered trade unions.

The Act applies not only to the union of workers but also to the association of employers. The main objectives of the Act are:

To promote both individual and collective welfare.
To secure the payment of salaries, wages, allowances, etc. of the workers.
To secure the employment of the workers.
To protect the working conditions of the workers.
To secure the opportunities related to the promotion of the workers.
To enlarge the training opportunities.
To assists in collective bargaining to protect the interest of the workers.
To help the workers in introducing themselves in participatory movement in the different discussion of the management of the organization.
To help in providing the educational, recreational, and cultural facilities.
To identify the different roles and responsibilities of the workers in the industry.

The Act is administered by the Ministry of Labour through its Industrial Relations Division. The Act inter alia provides for the following: —

It legalises Trade Union and gives it corporate personality (Sec. 13).
It provides for their registration (Secs. 4-8).
It gives certain immunities to a registered trade union (Secs. 17-18).
It gives Trade Union the right to participate in political activities (Sec. 16).
It allows the Trade Union to associate outsiders with it (Sec. 22).

The important fallout of the Trade Unions Act, 1926 is that it indirectly gives the workers (a) the right to go on a peaceful strike, and (b) to engage in collective bargaining. Further, the collective agreement arrived at between workmen and the employer is binding on both by virtue of Sec 18(1) of the Industrial Disputes Act, 1947.

Conclusion – Trade Union Movement in India

The trade union movement in India has evolved from being a fragmented worker association to a structured force shaping labour rights and industrial relations. From the very humble beginning in the late 19th century amidst colonial exploitation and industrial hardship, the trade union movement has evolved into a vital democratic institution, striving to protect the dignity and interests of the labor force in an increasingly globalized economy. The Trade Unions Act, passed in 1926, provided the legal foundation for collective bargaining, immunities, and political participation, thus turning trade unions into the pillar of India’s democratic and economic systems. As the current period demands more globalisation and labour market transformations, the trade unions must adapt to contemporary realities while preserving their core mission of empowering workers through solidarity, advocacy, and equitable dialogue. In doing so, trade unions can continue to act as a balancing force not just between the labour force and capital, but also between growth and social justice, efficiency and equity, and tradition and transformation.

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