What Were The Problems Which Affected Labour Movements Post Independence?

1. UNEVEN GROWTH: They are concentrated in the metropolises, largely catering to the organised sector. Rural Agricultural labour and small scale labour are grossly underrepresented.

2. LOW MEMBERSHIP: Trade union membership is growing, but the vast majority of India’s labour is not part of any trade unions. This reduces their collective bargaining power.

3. WEAK FINANCIAL POSITION: Membership fees are set too low (25 paise) by the Trade Union Act, 1926. They are particularly disadvantaged against corporate lobbying groups that are flush with cash.

4. POLITICAL LEADERSHIP: Careerist politicians and vested political agenda mean that worker interests are sidelined. Since the leadership may not be from the labour force, they are held captive to party politics. This lead to further exploitation.

5. THE MULTIPLICITY OF UNIONS: Bargaining power is diluted and it is easy for employers to divert the attention of the labour.

6. INTER-UNION RIVALRY: There are conflicts of interest and party politics between the unions.

7. THE PROBLEM OF RECOGNITION: Employers are under no obligation to give them recognition. This means that docile unions get recognition and genuine ones may be sidelined.

8. DIVERSE NATURE OF LABOUR: Most unions don’t have properly differentiated organisational structure to cater to different classes of labour. Eg: Differences between agricultural, formal and informal labour.

9. LACK OF PUBLIC SUPPORT: Especially post 1991, trade unionism is looked down as an impediment to growth and development. This has led to a general ebbing of the movement across the country.

India’s decisive shift towards market-led growth post-1991 has raised a lot of questions about the role of labour unions. Often, they are seen as an impediment to industrialisation and investment. However, their role is indispensable in balancing workers’ interests with that of investors. They also keep a check on the sustainability of business practices, including ethics. Hence, they play an important role in getting support for worker interests from the larger society. They also mobilise opinions in favour of labour. They are also instrumental in organising democratic protests and avoiding movements getting overly militaristic. Democratic trade unionism is also a must in avoiding workers coming under the influence of radical and anti-national elements. This is particularly important in the environment of rising socio-economic inequality post liberalisation.

The Government of India is focused attract investments by making the nation business-friendly. India had moved 14 places to be 63rd among 190 nations in the World Bank’s Ease of Doing Business Rank 2020. However, it failed to achieve the government’s target of being at 50th place.

The competitiveness of its labour market is a major area of worry where India is currently ranked 103 out of 141 countries by the World Economic Forum.