Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar

7172019 Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar

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Introduction

With the changed social political and educational environment in terms of awareness of righttrade unions are considered a major component of industrial relations system Workers union

plays a crucial role to protect the interest of its members

Trade unions traditionally performed different roles in their relations with individual employers

employer associations the state and the public at large Unions directly or indirectly played an

economic role of facilitating production and distribution in society Unions played this role

largely by promoting cooperation between capital and labour in production and in enterprise

restructuring to secure sustainable growth consistent with social equity employment

opportunities improved living and working conditions Unions also have argued for ensuring an

equitable distribution of the value-added by the production process Unions perform the

democratic and representative role by providing an identity to labour at the workplace and in

society at large

Liberalisation Change in the Nature of the State and Labour

In 1991 India adopted the Liberalisation Privatisation and Globalisation Least amount of state

intervention had an impact on the trade unions The arm of the state started strengthening the

capitalist class and they were considered as the chief instrument to promote development A new

meaning was given to the term lsquolabour reformrsquo which implied the power to lsquohire and firersquo

workers freedom to determine wages according to the market demand and supply Although the

state did not undertake lsquolabour reformsrsquo by introducing a new legislation to legitimise the demand

of the capitalist class it silently worked to reduce state intervention Consequently the employers

used different methods to reduce the size of the labour by decentralising production and even

sub-contracting for various operations to small businesses This led to reduction in the growth of

jobs in the organised sector and increase in the share of the informal sector in industrial

employment Regular workers were replaced by contract workers to reduce wage costs so that

business firms could compete in the market This started the process of weakening the trade

unions Lockouts were used by the employers to retrench workers and prolonged lockouts were

used as the instruments of pressurising labour to accept humiliating conditions of work before

lifting lockouts This further weakened the trade unions

Role and Relevance of Trade Unions in Contemporary Indian Industry

On the whole trade unions do very significant work and have supplied a long felt need and filled

an important gap A strong trade union is a guarantee of industrial peace and makes for stabilityof industry Any decision agreed upon collectively by workers is bound to command obedience of

and respect among the general body of workers and employers also cannot afford to treat such

decisions in a light manner They not only bring about improvement in the conditions of work

employment and wages of workers but also lead to great efficiency among workers and create a

feeling of self respect and confidence among them They do useful work for labourers during the

period of sickness and accident benefits and support them during unemployment or during strike

and lockouts They also arrange the legal assistance to workers if necessary besides they

undertake many welfare measures for their members eg running schools for the education of

children or having their own library or reading rooms or providing many in-door and outdoor



games and other recreational facilities Some trade unions go so far as to undertake housing

schemes for their workers and undertake publication of some magazines or journals

Trade unions are a legitimate system for organising workers to voice their rights and grievances

Without unions companies would become either too paternalistic or too dictatorial Responsible

unions play an important role in maintaining cordial relations between management and labour

The aims and objectives of the major trade unions in India are seen to vary according to their

political ideologies For instance some unions are influenced by Leftist principles aimed at

overhauling the capitalist mode of production as a whole

Emerging need of workers

One of the important thrust areas in the literature on globalization and labour has been the

changing notion and nature of ldquoworkrdquo While most of the literature tries to capture the changing

landscape of labour relations through the frame of ldquoworkrdquo it is equally important to understand

the spatiality within which the nature of the ldquoworkrdquo is shifting eroding or continues to exist The

changing nature of lsquoworkrsquo is closely linked to the ideas of lsquozoningrsquo that has been appropriated by

economies worldwide and India is no exception

As the skill levels and educational qualifications of employees advance the role and significance

of trade unions tend to diminish This is because (a) employees are able to represent their own

case and (b) managements are more sensitive to the needs of individual employees whose

intellectual skills become almost uniquely valuable

This is already happening in the sunrise industries based on brainpower such as IT and

telecommunications Another phenomenon in these modern industries is that employees have

greater opportunity and tendency to move from one company to another not only because of

better terms of employment but also because of their yearning to learn new skills

Response to macroeconomic changes

The changing role of the government in India and the introduction of new technology have both

radically altered the employment scenario Shifts in job opportunities from the formal to the

informal sector and increasing employment opportunities for educated and skilled workers have

necessitated a paradigm shift in the approach and function of unions Indian trade unions have

however been slow in reacting to these changes This in turn has resulted in the loss of

membership within these unions

Make in India

In recent years concerns have been expressed about the Indian economys reliance on the services

sector It is felt that there is a need to build a larger manufacturing sector With make in India

program government is planning a major new national program designed to transform India into a

global manufacturing hub It will bring more investment in manufacturing and create more

employment Thus trade unions will have to reposition themselves in changing investment

scenario



Challenges

Some of the major problems faced by trade unions in India are small size poor finance and

politicization multiplicity of unions and lack of enlightened labour force But among others the

key challenges before Indian trade unions are as follows-

1 Labour flexibility measures have either replaced regular jobs with contract labour or have

at least created lsquobad jobsrsquo Flexible labour laws are likely to lead to less hiring and more

firing

2

Labour penetration by the union in the unorganised sector is only at the stage of infancy

and needs to be fostered at an accelerated pace

3 The increasing integration of national economies in a single global market and the

appearance of new world production systems are demanding stronger coordination of

national and international trade union agendas

4 With the deepening of reform and opening-up India has continued to face enormous

employment pressures The Indian trade unions have heavy tasks in promoting

employment and protecting workers

5 With the expansion of economy Indian enterprises are gradually entering into the

international market and labour relations in the India-funded enterprises overseas are one

of new concerns of the trade unions

6 Politically affiliated Trade Unions failed to fulfill the aspirations of India workers and as

such there is urgent requirement of more professional body which is not politically

inclined and can give voice to the rights and welfare of workers



Rise of Independent Industry UnionsIn recent years instead of getting affiliated to unions supported by political parties the employees

are organising independent industry-wise unions for example the United Forum of Bank

Employees the National Co-ordination Committee of Electricity Employees and Engineers

(NCCOEE) unions formed in banks insurance companies and financial institutions The rise of

independent unions has also weakened the role of politically affiliated unions

Change in profile of workers

NSDCrsquos original reports (2011) identify serious skill gaps in some relatively education-

unintensive industries such as construction textiles garments leather and food-processing Due

to rapidly changing technology and work environment workers have to upgrade their skillsfrequently According to the Talent Shortage Survey by global employment agency Manpower

Group In India 61 had trouble recruiting the right workforce Developing nations have to

narrow the skills gap and ldquoproduce more workers capable of doing talent intensive jobs that

require higher qualificationsrdquo

Transition from manufacturing to service

Information Technology (IT) Business Process Outsourcing (BPO) and Retail Sector with large

potential for increasing employment opportunities are emerging They engage a large number of

blue-collar workers The knowledge sector employees get hefty pay packets which give them a

certain kind of arrogance not to be a part of trade unions with other industrial workers Individual

bargaining is the key mode of determining rules of employment relationship These employees ofthe IT and BPO sectors are called lsquocyber cooliesrsquo since they have to work for long hours and

always suffer form tension arising out of the attitude of the employer to lsquohire and firersquo at any

time They also become victims of emotional stress resulting in nervous and physical disorders

The government wants to declare the IT and BPO sectors as lsquopublic utilitiesrsquo The trade unions

are making efforts so that workers in IT and BPO sectors are permitted to become members of

unions Other additions to the list are Retail Sector and Special Economic Zones (SEZs) The

strategy of the government is to exempt the Retail Sector from the purview of Shops and

Establishment Act In the name of promotion of exports earlier Free Trade Zones were exempted

from the application of labour laws Now several Ministers are in favour of SEZs being also

declared lsquopublic utilitiesrsquo so as to provide them the exemption from labour laws It is really

strange that without providing any social basis of its decisions the government intends to use its

discretion to declare any activity as public utility Such an anti-labour attitude must be resisted bythe trade unions The unions are faced with two sets of challenges first they have to convince

blue-collar workers to shed their class arrogance and be part of the broad labour movement

second the trade unions have to force the government not to go ahead declaring any sector as

lsquopublic utilityrsquo Both challenges are quite formidable in the new business environment

In addition to their traditional bargaining activities unions now have a newly acquired voice and

representative function Many of them are trying to increase their value to workers by providing a

variety of services to their members as well as to the community to which they belong Such

services range from providing legal and financial advice to improving skills



New functions of the trade unions

With the change in time and type of work trade unions have different challenges in front of them

Trade Unions are trying to catch up with the changes tapping the new requirements and changing

their working style with time Some of the new functions of the trade unions include-

1 Communication- Many large unions publish a newsletter or a magazine with the main aim of

clarifying their policy or stance on certain principal issues as well as to pass on information

about their activities

2 Welfare activities- Many unions are engaged in a number of welfare activities such as

providing housing and organising cooperative societies to improve the quality of workerslives The Textile Labour Association (TLA) Ahmedabad for example has ventured to

organise self-employed women (in the Self Employed Womens Association [SEWA]) and has

even started banking activities for this purpose

3 Education- Unions make efforts to launch educational programs for workers to enhance their

knowledge of the work environment and to inform them about issues concerning them

particularly those regarding their rights and responsibilities and regarding procedures and

systems that exist in the workplace for redressing grievances

4 Research- Union negotiators need updated information to be systematically collected and

analysed at the bargaining table They also need to backup their wage demands with

knowledge of the industry of productivity and of comparative industry practices

Conclusion

Trade Unions are vital institutions in an Industrial Relations System Since 1991 the IR scenario of

the country has been changing The State Governmentrsquos industrial policy is mostly favoring to the

employers Decisions are coming for the industries Their interest is given priority Unionism

representing the ethos of collectivism appears to be getting marginalized These institutions are still

being afflicted by age long maladies like politicization rivalries In this context quest for the future of

unions as an industrial as well as socio-political institution is of great importance

Trade unions must reinvent themselves to sustain their organization in the years ahead Most

important challenge for unions in the 21st century will be to shift from the old strategy ofconfrontation and conflict to one of cooperation and collaboration Education and human resource

development activities which have been often cleverly used by the management could be used by

unions as effective policy instruments to reduce the vulnerability of informal sector workers Trade

unions in India for example could play an important role to re-train and rehabilitate the large number

of workforce who will be he required to be separated from the Indian public sector enterprises and

state establishments



References

Dankert C E (1948) Contemporary Unionism New York Prentice Hall

Ghosh P amp Geetika (2007) Unionisation A feasibility study for the indian software industry

Russian Management Journal 2 45ndash56

Crouch Harold Trade Unions and Politics in India PC Manaktala Sons Pvt Ltd Bombay 1966

Thomas T (2005) Changing role of trade unions Retrieved on 22 April 2005 from

httpwwwrediffcommoney2005apr22guest2htm

Changing Roles Of Trade Unions In India Asian Academy of Management Journal 141 (2009) 1216 Print

Aneesh A 2006 Virtual Migration The Programming of Globalization Durham Duke University

Press in Upadhyay C and AR Vasavi2008 In an Outpost of the Global Economy Work and

Workers in Indias Information Technology Industry New Delhi Routledge

Thomas Henk (1999) ldquoTrade Unions and Developmentrdquo Labour and Society Programme

International Institute for Labour Studies ILO Geneva

Ishola Genty Globalisation And Trade Unions Challenges Ojo-Lagos Nigeria Department of

Industrial Relations amp Public Administration 2015 Print



Introduction

With the changed social political and educational environment in terms of awareness of righttrade unions are considered a major component of industrial relations system Workers union

plays a crucial role to protect the interest of its members

Trade unions traditionally performed different roles in their relations with individual employers

employer associations the state and the public at large Unions directly or indirectly played an

economic role of facilitating production and distribution in society Unions played this role

largely by promoting cooperation between capital and labour in production and in enterprise

restructuring to secure sustainable growth consistent with social equity employment

opportunities improved living and working conditions Unions also have argued for ensuring an

equitable distribution of the value-added by the production process Unions perform the

democratic and representative role by providing an identity to labour at the workplace and in

society at large

Liberalisation Change in the Nature of the State and Labour

In 1991 India adopted the Liberalisation Privatisation and Globalisation Least amount of state

intervention had an impact on the trade unions The arm of the state started strengthening the

capitalist class and they were considered as the chief instrument to promote development A new

meaning was given to the term lsquolabour reformrsquo which implied the power to lsquohire and firersquo

workers freedom to determine wages according to the market demand and supply Although the

state did not undertake lsquolabour reformsrsquo by introducing a new legislation to legitimise the demand

of the capitalist class it silently worked to reduce state intervention Consequently the employers

used different methods to reduce the size of the labour by decentralising production and even

sub-contracting for various operations to small businesses This led to reduction in the growth of

jobs in the organised sector and increase in the share of the informal sector in industrial

employment Regular workers were replaced by contract workers to reduce wage costs so that

business firms could compete in the market This started the process of weakening the trade

unions Lockouts were used by the employers to retrench workers and prolonged lockouts were

used as the instruments of pressurising labour to accept humiliating conditions of work before

lifting lockouts This further weakened the trade unions

Role and Relevance of Trade Unions in Contemporary Indian Industry

On the whole trade unions do very significant work and have supplied a long felt need and filled

an important gap A strong trade union is a guarantee of industrial peace and makes for stabilityof industry Any decision agreed upon collectively by workers is bound to command obedience of

and respect among the general body of workers and employers also cannot afford to treat such

decisions in a light manner They not only bring about improvement in the conditions of work

employment and wages of workers but also lead to great efficiency among workers and create a

feeling of self respect and confidence among them They do useful work for labourers during the

period of sickness and accident benefits and support them during unemployment or during strike

and lockouts They also arrange the legal assistance to workers if necessary besides they

undertake many welfare measures for their members eg running schools for the education of

children or having their own library or reading rooms or providing many in-door and outdoor

































Make in India






scenario



Challenges






firing

2









































































Conclusion
















References















































Make in India






scenario



Challenges






firing

2









































































Conclusion
















References

















Challenges






firing

2









































































Conclusion
















References









































































Conclusion
















References

















References















Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar

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Transcript of Role and Relevance of Trade Unions in Contemporary Indian Industry by Mukesh Bhavsar