Problems of Trade Unions in India | Commerce & Accountancy Optional Notes for UPSC PDF Download

Challenges faced by Trade Unions in India

Trade Unions in India have consistently faced formidable challenges, encountering substantial obstacles in their quest to make their concerns known and gain recognition. The persistent struggles within the relentless cycle of workers' lives create an enduring and complex environment.
These unions grapple with a multitude of challenges, which will be elaborated upon in the following sections:

1. Leadership

• Political Influence on Leadership:
  • Many Trade unions in India are known to be politically affiliated, often under the control of politicians and lawyers.
  • This political influence poses a significant obstacle, as these leaders may lack hands-on experience in physical labor, making it challenging for them to empathize with the workers' struggles.
• Leadership Disconnect:
  • The leaders' lack of relatability to the workers' hardships is a major issue, hindering their ability to lead trade unions honestly.
  • Politically driven motives of these leaders often diverge from the genuine concerns of the workers, creating a disconnect in leadership priorities.
• Educational Disparities:
  • Trade union members, typically comprising less educated individuals, face challenges due to poor language skills and limited literacy.
  • Illiteracy among union members hinders effective communication and oratory skills, essential qualities for effective leadership.
• Outsider Involvement:
  • The Trade Union Act does not impose restrictions on the involvement of 'outsiders' in trade unions, leading to the potential dominance of external leaders.
  • Allowing outsiders to take leadership roles can impede the internal growth and autonomy of the trade unions.

2. Financial Troubles

• Trade unions, like any other organization, rely on funds to operate effectively. However, this presents a challenge as unions need resources to conduct events and programs that fulfill their commitments to members. The National Commission of Labour noted that unions aiming to increase membership may keep subscription rates low, and regular collections may be inconsistent.
• Issues identified include:
  • Low Subscription Rates:
    • Unions keen on boosting membership may set low subscription rates, impacting their financial resources.
    • Workers may be hesitant to contribute more if they perceive that the services provided by the union do not justify higher fees.
  • Organizational Expenses:
    • Unions are responsible for various expenses, including salaries for office staff, allowances for office bearers, and costs associated with annual meetings or conventions.
    • Expenditures such as rent, printing, stationery, and postage add to the financial burden, making it challenging to maintain a balanced budget.

3. Small Size of Union

Despite the increase in the number of trade unions in India, the member count has not gone up. Instead, there's a trend of decreasing membership. Here are some key points to understand:

• Decline in Membership:
  • More unions formed, but fewer people joining.
  • Average membership per union is only 800, while it's much higher in countries like the USA and the UK.
• Trade Unions Act Influence:
  • The Trade Unions Act sets a low bar for forming unions – just seven members are needed.
  • This might sound easy, but it can be a problem. Smaller unions struggle to make an impact or get funds for legal help.
• Impact on Grievances:
  • Smaller unions may find it hard to make their concerns heard by management.
  • Having a small number of members can be a challenge when dealing with workplace issues.
• Financial Struggle:
  • Smaller unions face difficulty raising funds for legal support or union activities.
  • Limited resources make it tougher for them to carry out important work.

4. Multiplicity of Unions

• Leadership Dreams:
  • Leaders envisioned more unions forming gradually for better collective bargaining in India.
• Rapid Formation Issue:
  • Rapid creation of many unions turned out to be a problem for India.
  • Politics overshadowed the main goal – worker welfare.
• Survival of the Fittest:
  • Constant struggle for management support weakened the trade union movement.
  • Too many unions competing led to a survival battle.
• Political Influence:
  • Most unions are linked to political parties, causing problems when parties split.
  • Changes in party leadership result in frequent shifts in union leadership and functioning.
• Consistency Challenges:
  • Unions face hurdles in growth due to inconsistent leadership and frequent changes.
  • Lack of stability affects their ability to consistently work for worker welfare.

5. Intra Union Rivalry

• Intra Union Rivalry:
  • Formation of numerous unions leads to internal competition and conflicts.
  • Rivalry among unions undermines the original purpose of their creation.
• Adverse Approaches:
  • Unions may adopt counterproductive methods detrimental to workers' interests.
  • Contesting rival union activities without valid reasons can hinder overall progress.
• Weakening of Trade Union Movement:
  • Intra union rivalry serves as a significant factor contributing to the decline of the trade union movement.
  • Unions engaged in internal conflicts are less effective in achieving their goals.
• Employer Advantages:
  • Employers exploit intra union rivalry for their benefit.
  • Pitting unions against each other makes it easier for employers to handle negotiations.
• Divide and Rule Strategy:
  • Intra union conflicts hinder the unity needed for effective collective bargaining.
  • Employers capitalize on divisions, using a 'divide and rule' approach to their advantage.

6. Politicization

• Historical Connection:
  • Political influence on trade unions dates back to the Indian freedom struggle.
  • Initially, political leaders provided effective guidance to unions during this period.
• Long-Term Impact:
  • Over time, the intertwining of politics with trade unions undermined their primary purpose – unity among the working class.
  • Political splits resulted in corresponding trade union divisions, impacting the overall unity.
• AITUC Split (1920s):
  • Oldest trade union, All India Trade Union Congress (AITUC), experienced a split in the late 1920s.
  • AITUC divided into the All India Trade Union Federation (AITUF) due to ideological differences.
• Fragmentation Consequences:
  • Frequent political fragmentation leads to the formation of multiple trade unions.
  • Lack of focus on the primary goals of the union by political leaders contributes to these divisions.
• Intra Union Rivalry:
  • Rapid fragmentation results in intra union rivalry and conflicts.
  • Disunity among workers is exploited by employers due to the lack of a united front.
• Employer Exploitation:
  • Divisions caused by political differences make it easier for employers to manipulate negotiations.
  • Disunity among trade unions weakens their collective bargaining power.

7. Illiteracy

• Pervasive Illiteracy:
  • A significant challenge hindering progress, not only for workers but the entire nation, is the prevalence of illiteracy among Indian workers.
• Exploitation by Leaders:
  • Illiterate workers often become targets for exploitation by union leaders.
  • Lack of education makes them susceptible to manipulation, working against their own interests for the benefit of political parties.
• Political Puppetry:
  • Illiterate workers may be turned into political puppets by external leadership.
  • Manipulation leads them to support political agendas, even if it undermines the unity of workers.
• Defeat of Union Purpose:
  • Illiteracy-driven manipulation defeats the primary purpose of forming trade unions.
  • Instead of working for worker welfare, unions may serve the interests of political parties.
• Division Along Multiple Lines:
  • Illiteracy, coupled with ignorance, leads to divisions among workers based on caste, race, religion, gender, etc.
  • Outside leadership exploits these divisions for personal political gains.
• Erosion of Union Image:
  • Trade unions lose credibility when their primary goal shifts to serving political interests.
  • Illiteracy-driven manipulation weakens the bargaining power of unions and diminishes their seriousness in the eyes of employers.

8. Apathy of workers and Role of management

• Balancing Act:
  • Workers often struggle to balance their jobs and active participation in trade unions effectively.
  • Juggling between employment and union activities becomes challenging for workers.
• Livelihood vs. Union Involvement:
  • The dilemma arises from the need to earn a living through employment versus the desire to voice concerns through trade unions.
  • Workers may prioritize their jobs over active involvement in union activities.
• Limited Engagement:
  • Workers may not actively engage in union work unless faced with significant issues.
  • Limited interest in union activities due to the imperative nature of employment for livelihood.
• Management's Exploitation:
  • Management may exploit this dilemma to its advantage.
  • Blaming unions for issues such as low productivity, deferred work, or lack of goodwill among customers.
• Perceived Division:
  • Management views the presence of unions as a source of division between management and employees.
  • Allegations against unions for hindering productivity and employee efficiency.
• Strategic Blame Game:
  • Management strategically attributes organizational challenges to the influence of unions.
  • Blaming unions becomes a tactic to shift responsibility for various workplace issues.