EconReads
Donate

Labor Unions & Collective Bargaining

Trade Unions in India

The history and structure of India's trade union movement, its political links, and its role in a largely informal workforce.

India has a long history of organised labour, dating back to the early twentieth century. Its trade unions have played important roles in politics and in shaping labour laws.

History

The All India Trade Union Congress, founded in 1920, was India’s first national trade union federation. The Trade Unions Act of 1926 provided for the registration of unions and gave them legal protections. After independence, several national federations emerged, many linked to political parties.

Central trade unions

India has several central trade union organisations, such as the Bharatiya Mazdoor Sangh, the Indian National Trade Union Congress, the Centre of Indian Trade Unions and the All India Trade Union Congress. Many are affiliated with political parties, which shapes their priorities and actions.

The informal workforce challenge

Most Indian workers are in the informal sector, without written contracts or social security. Traditional unions have been strongest in the formal sector, such as public sector enterprises, banks, railways and large factories. Organising informal workers is harder, though organisations like the Self-Employed Women’s Association, or SEWA, founded in 1972 by Ela Bhatt, have organised hundreds of thousands of informal women workers.

General strikes

Central trade unions have organised nationwide general strikes, often called Bharat Bandh, to protest against policies such as privatisation and changes to labour laws. Such strikes have drawn large participation, especially in public sector industries and banking.

Organising informal workers

Street vendors, home-based garment workers and agricultural labourers usually have no single employer to bargain with. Organisations like SEWA help them by forming cooperatives, offering savings and insurance, providing training and lobbying governments for protections, such as the Street Vendors Act. This model adapts unionism to informal work.

Declining membership

As in many countries, union membership in India’s formal sector has faced pressure from privatisation, contract labour and changing industries.

Thinking unions only matter for factory workers

Indian unions have also represented bank employees, teachers, transport workers and, increasingly, informal and gig workers. New forms of organising are emerging for workers without traditional employers.

Key takeaways
  • India's first national union federation, AITUC, was founded in 1920, and the Trade Unions Act came in 1926.
  • Central trade unions are often affiliated with political parties.
  • Most workers are informal, making traditional organising difficult; SEWA offers an alternative model.
  • Unions organise national strikes, especially against privatisation and labour law changes.
3 min read

No recording for this one yet - EconReader can read it aloud for you.

Welcome to EconReads

This site is made for visually impaired learners, so our read-aloud reader is already switched on to help you explore hands-free.

You're in control - turn it off any time using the Reader button at the top of the page.

EconReader Ready