Cog in the Machine:: A Brief History of Labour Unions in India
BY ANNAPOORNA MARIAM FATHIMA/ NOVEMBER 23, 2024
DESIGNED BY RATAN MUKHERJEE
“The history of all hitherto existing human society is the history of class struggles” (Marx, 1848).
A short history of trade unions and how they have impacted attitudes towards labour traditions across contexts.
orkers of the world, unite” (Marx, 1848). Trade unions are, simply put, organisations of workers whose purpose is to safeguard workers’ rights. Negotiating better wages, improving working conditions and safety standards, and increasing the bargaining power of workers are some of the main roles of unions (Webb and Webb, 1920).
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The contemporary concept of the trade union has its roots in the medieval phenomena of trade and artisan guilds. Civilisations like Mesopotamia had formal systems of labour and wages, as depicted in Mesopotamia’s Codex Hammurabi Law. It laid down standard wages for various forms of labour – shipbuilders were paid 2 shekels for each 300 bushel vessel constructed, and ferrymen were paid 3 gerah per day (Powell, 1995). Ancient Rome too had multiple associations known as collegiums, ranging from shipbuilders guilds, and merchant mariners to fraternities of Roman priests (de Ligy, 2001). Similar constructs existed across the world. In ancient India, these guilds were known as Srenis, and played a significant role in shaping the economy and society of the subcontinent. These were associations of artisans, merchants, and traders, and their influence can be traced back to the Mauryan period. Srenis helped regulate trade practices, control prices, maintain quality standards, and provide a range of services to their members (Gupta, 2014).
This tradition of labour collectives developed along with the changing face of labour, and the rise of industrialisation, into modern trade unions in 18th century Britain. The birth of the Industrial Revolution drew large numbers of people into cities. At the same time, new productive forces (machinery) were developed, and a vast workforce came into being. This soon resulted in the chaotic expansion of cities, the rise of social and political conflicts associated with the need for productivity increases, labour intensification, long working hours, appalling working conditions, and low wages (Amorim, 2014). The nature of industrial work created a new class of “workers”.
As opposed to a farmer or an artisan, who ultimately sold a product of their labour, for the industrial worker, their labour was the product being sold; thereby giving up part of their freedom and self-agency in the service or the master/employer. The new arrangement was termed “wage slavery” by several critics but persisted nevertheless (Tomich, 2004).
During the long period between the 18th century and the 1960s, production was based mainly on the manual labour of factory workers who also shared a common culture, habits, ideologies, feelings, social and party affiliations, due to the fact that they had more or less similar jobs. Because of their position at the centre of commodity production, these workers, perceived as a homogenous mass, were assumed to be the main potential agents of the socialist revolution (Amorim, 2014). Workers had little to no job security, little control over their work, or its impact on their lives and health. It is in this context that modern trade unions and labour organisations (socialist, communist, and anarchist) emerged, including the Communist League, workers’ conferences, revolutionary papers, and journals.
The value of labour-power constitutes the conscious and explicit foundation of the trade unions, whose importance for the working class can scarcely be overestimated. The trade unions aim at nothing less than to prevent the reduction of wages below the level that is traditionally maintained in the various branches of industry. That is to say, they wish to prevent the price of labour-power from falling below its value. (Das Kapital, V1, 1867)
The value of labour-power constitutes the conscious and explicit foundation of the trade unions, whose importance for the working class can scarcely be overestimated.
As collective bargaining and early worker unions grew with the onset of the Industrial Revolution, the government began to clamp down on what it saw as the danger of popular unrest. In 1799, the Combination Act was passed, prohibiting trade unions and collective bargaining by British workers. Trade unions were viewed as threats to economic order and public stability and the Act reflected the interests of employers and the state, prioritising the protection of business over workers' rights.
1.Wage labour before industrialisation was largely agricultural related: payment was often in kind, such as food or shelter, rather than cash. Artisans and tradespeople formed guilds to regulate wages and working conditions. Employment was typically unstable, reliant on local demand, with little worker protection.
2.The process through which workers, represented by unions, negotiate with employers over terms of employment, including wages, hours, benefits, and working conditions. This collaborative dialogue aims to reach agreements that protect workers' rights while balancing the needs of the employer. Ultimately, collective bargaining serves to empower employees and establish fair labor practices.
However, by this time unions were already widespread in cities like London. By the 1810s, the first formal labour organisations to bring together workers of divergent occupations were formed (Mace, 1999). By 1824, the Combination Act was repealed, signifying a change in general attitudes towards labour organisations. Possibly the first such union was the General Union of Trades, also known as the Philanthropic Society, founded in 1818 in Manchester. Soon, national permanent trade unions were established, such as the London Trades Council (Cole, 2010). They still faced immense criticism, reflecting the prevalent scepticism about the feasibility of movements to effect meaningful change within the system:
If it were possible for the working classes, by combining among themselves, to raise or keep up the general rate of wages, it needs hardly be said that this would be a thing not to be punished, but to be welcomed and rejoiced at. Unfortunately, the effect is quite beyond attainment by such means. The multitudes who compose the working class are too numerous and too widely scattered to combine at all, much more to combine effectually. If they could do so, they might doubtless succeed in diminishing the hours of labour, and obtaining the same wages for less work. They would also have a limited power of obtaining, by combination, an increase of general wages at the expense of profits. (Mill, 1871)
British trade unions were finally legalised in 1872, after a Royal Commission on Trade Unions in 1867 agreed that the establishment of the organisations was to the advantage of both employers and employees. Other European countries soon followed suit.
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Source: Getty Images. (1979). A march against government spending cuts in November 1979. [Photograph]. The Guardian. https://www.theguardian.com/books/2015/aug/03/postcapitalism-guide-to-future-paul-mason-review-engagingly-written-confused
Further, in the USA, unions were constantly persecuted under various trade laws, such as the Sherman Antitrust Act (Harvard Law Review). Enacted in 1890, it was a landmark US law aimed at promoting competition and preventing monopolies. It prohibited business activities that restrained trade or commerce, making it illegal for companies to conspire to limit competition, thus ensuring a fair marketplace. Under the Act, trade unions were often viewed as conspiracies that restrained trade, leading to legal action against them. Courts sometimes ruled that strikes and collective bargaining constituted illegal activities, interpreting the Act to suppress union efforts. This persecution aimed to maintain the status quo of employer dominance, limiting workers' rights to organise and negotiate for better conditions.
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Source: Wikimedia Commons/ Farm Security Administration / Office of War Information, USA. (1943). Young women workers in a booming Bombay textile mill, 1941-1943. [Photograph]. The Wire.
https://thewire.in/history/the-invisible-women-of-colonial-indias-textile-industry
European thought soon disseminated into the colonies. Trade unions in India began gaining traction in the late 19th and early 20th centuries, amid rising industrialisation and the growth of an industrial working class due to the introduction of railways, plantations, and factories. This was accompanied by worker unrest due to poor working conditions, long hours, and low wages.
Early labour movements were primarily driven by workers in emerging industries like textiles, railways, and mining. The Bombay Millhand's Association, formed in 1890, was the earliest known trade union in India. It was followed by many, including the Madras Labour Union, founded in 1918 by B.P. Wadia. Soon, the All India Trade Union Congress (AITUC) was established in 1920, which aimed to unify labour movements across the country.
The struggle for independence combined with labour movements, as trade unions became platforms for political activism, and aligned with nationalist agendas. The Indian Trade Union Act of 1926 was a landmark, formalising union registration and activities.
The struggle for independence combined with labour movements, as trade unions became platforms for political activism, and aligned with nationalist agendas.
Post-independence, unions became essential in advocating for labour rights, strengthened by the Trade Union Act of 1947, which came into being in the aftermath of the historic Buckingham Mill case. It was spurred by a strike by workers at the Buckingham and Carnatic Mills in Madras (now Chennai) over wage disputes and poor working conditions. The management's response was to dismiss several workers, leading to further unrest, and a suit was filed to declare the strike illegal. The Madras High Court granted an interim injunction against the Strike Committee of the Madras Labour Union forbidding them to induce certain workers to break their contracts of employment by refusing to return to work.
The 1960s and 70s saw a surge in union militancy, due to various factors including stagnant wages, rising inflation, and poor working conditions. The period was marked by political upheaval, including the Emergency (1975-1977) declared by Indira Gandhi, which led to a crackdown on dissent, fueling militancy as unions resisted authoritarian measures. The influence of leftist ideologies, particularly from the Communist Party of India (CPI) and the Communist Party of India (Marxist) (CPI-M), strengthened militant labour movements, as these parties advocated for radical changes in labour rights and policies (Joseph, 1986). This increased militancy led to legislative reforms aimed at improving working conditions and job security, the the emergence of new unions, especially those representing marginalised communities, and widespread political mobilisation of labour movements. The Minimum Wages Act (1948), Maternity Benefit Act (1961) and the Factories Act (1948) are some legislation that underwent scrutiny, leading to a series of amendments. For example, minimum wages rose from INR 35 per day to INR 160 per day in 2015, and the duration of maternity leave was increased and creche facilities provided in applicable workspaces. The unrest furthered discussions regarding economic policy shifts that eventually contributed toward the liberalisation and privatisation of the 1980s and 90s (Bhowmik, 2006).
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Source: The Kheel Center. (1910). Members of the Women's Trade Union League (WTUL) of New York pose with a banner calling for the 8 hour day. [Photograph]. Flickr. https://flic.kr/p/93uzdR
Today, the popularity of trade unions has relatively declined due to a combination of factors, including government antagonism, constitutional changes, and laws regulating labour. In the UK and USA, right-wing proposals make it harder for unions to form or limit their power. Conversely, there are many social policies such as minimum wage, paid vacation, parental leave, etc., that decrease the need to be in a union. Specifically in the USA, the decline of unionisation since the 1960s is strikingly associated with a very strong rise of income and wealth inequality and since 1967 with loss of middle class income (Piketty, 2014).
Specifically in the USA, the decline of unionisation since the 1960s is strikingly associated with a very strong rise of income and wealth inequality and since 1967 with loss of middle class income
Unions in countries with restrictive laws face multiple challenges that further undermine their efficacy. Limited legal recognition can prevent unions from officially representing workers. Unions can also encounter government surveillance and repressions, and face strike bans and heavy penalties. Weak collective bargaining, lack of funding, and difficulty in recruiting members and building solidarity further curtails their ability to function and negotiate favourable working conditions (Freeman, 2005). Saudi Arabia is one such country that prohibits independent labour unions, with severe penalties imposed (Morsy, 2020).
Decline in manufacturing is also a significant cause. Many “First World” or OECD countries outsource manufacturing industries to less developed and developing countries. For instance, many American companies, such as Apple and Nike outsource their production to countries like China, Vietnam, and Bangladesh. This increases the need for labour security in those countries, and globalisation makes it hard for unions to standardise across countries, due to diverse labour markets with varying laws and wages, increased competition leading to cost minimisation, the prevalence of gig and contract labour, and technology asymmetry (Waterman, 2007). As per Lee (2017), the unions have indeed been able to reduce wage disparities through their active role. The economist Joseph Stiglitz (2012) has asserted that, "Strong unions have helped to reduce inequality, whereas weaker unions have made it easier for CEOs, sometimes working with market forces that they have helped shape, to increase it."
In a post capitalist society, where the nature and meaning of work and labour has undergone a shift, unions and labour rights organisations take on a newfound importance. Most of the benefits accompanying white and blue collar jobs today are the result of ceaseless campaigning and striking by unions. A recent example of the enduring relevance of unions is the 2023 strike by the American actors union SAG-AFTRA (Screen Actors Guild - American Federation of Television and Radio Artists). Significant in the industry for negotiating contracts that ensure fair wages, advocating for safety, intellectual property, and anti-harassment measures, and promoting diversity and inclusivity, SAG-AFTRA went on strike in response to changes in the industry caused by streaming, and new technology like AI and digital recreation, adversely impacting their job security. Simultaneously, the Writers Guild of America went on strike. It marked the first time that actors partook in a labour dispute in the USA since 1980, and is also the first time since 1960 that actors and writers took action together.
The nature of the entertainment and media industry is such that there is a constant influx of new technologies (for better or for worse) that revolutionise techniques and forms. The transition from the visual medium of film to digital in the early 2000s, for instance, was one such upheaval that faced plenty of backlash. The present-day insurgence of artificial intelligence in content creation, however, seems to have more flaws than benefits. From displacement of creative professionals, prioritisation of formulaic homogenised content over innovation compounded by the devaluation of human creativity, to perpetuation of bias, and harmful propagation of “deepfake” technology is resulting in opposition from creative professionals around the world.
In 2024, South Korean Samsung workers declared an indefinite strike campaigning for better pay and leave policies. This is the largest labour action in the 55 year long history of the company. Similarly, in India earlier this year, millions of workers went on strike to highlight real issues of working people before the general elections. The main demands included fixing a minimum wage, withdrawing the proposal to privatise public sector enterprises (including the Visakhapatnam Steel Plant) and restoration of the old pension scheme for organised and unorganised workforces.
On October 31st, 2024, when most of India was celebrating the festival of Deepavali, the “Gig and Platform Services Workers Union” (GIPSWU), a women-led gig workers' national trade union observed a nation-wide “Digital Strike”, wherein they refused to work by switching off their phones, in retaliation to being expected to work on government holidays. The strike attempted to unite gig workers across the country to fight for their rights, denied to them by exploitative platform companies and the government.
Unionisation and formal organisation of the workers of any sector is essential for safeguarding workers’ rights.
Simultaneously, the prevalence of social media helps facilitate the rapid dissemination of information and communication, enabling efficient organisation. Movements are able to garner immense support worldwide through the visibility accorded by social media. People in general have a better understanding of their rights and are less afraid to demand for them. Unionisation and formal organisation of the workers of any sector is essential for safeguarding workers’ rights.
Keywords
Trade Unions, Labor Rights, Collective Bargaining, Industralisation, Gig Economy, All India Union Congress (AITUC), Screen Actors Guild, Gig and Platform Services Workers Union (GIPSWU), Combination Acts, Buckingham Mill Strike, Emergency in India, Indira Gandhi, Karl Marx, Workers Rights
References
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https://www.epi.org/publication/unions-and-well-being/
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https://www.economist.com/the-economist-explains/2015/09/29/why-trade-unions-are-declining
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