The document outlines 7 main problems facing trade unions in India: 1. Uneven growth across industries and geographic areas has limited union influence. 2. Unions tend to be small in size due to the ability of any 7 workers to form a union and multiplicity of unions. 3. Unions suffer from financial weakness as workers do not regularly contribute and unions keep fees low. 4. Multiple unions in industries lead to rivalry and weaken collective bargaining power. 5. Unions are often dominated by outside political leaders rather than worker representatives. 6. Political parties have influenced unions, turning them into tools of party politics. 7. There is an issue around compulsory recognition of sufficiently large

1. Sukti Chakrabarti
Assistant Professor(HR)

2. MAIN PROBLEMS
1. UNEVEN GROWTH(INDUSTRY-WISE AND AREA-
WISE)
2. SMALL SIZE OF UNIONS
3. FINANCIAL WEAKNESS
4. MULTIPLICITY OF UNIONS AND INTER-UNION
RIVALRY
5. LEADERSHIP ISSUE
6. POLITICALISATION OF UNIONS
7. PROBLEM OF RECOGNITION OF TRADE UNIONS

3. I]UNEVEN GROWTH(INDUSTRY-WISE
AND AREA-WISE)
 The trade union has not influenced a variety of
industries. Plantations, coalmines, food, textiles,
printing press, chemicals, utility services, transport
and communications and commerce are the main
organised industries where unionism has made
progress.
 The trade union activities are mostly concentrated in
the large-scale industry sector and there too in regard
to manual labour only.

4. UNEVEN GROWTH(CONTD…)
 Trade unionism is mainly concentrated in a few states
and in bigger industrial centres in those states. E.g.
textile workers in Bombay, Ahmedabad, Surat,
Vadodara, Indore, Kanpur; plantation labour in
Assam, West Bengal, Tamil nadu and Kerala; Jute mill
workers in Bengal…….
 Hardly any trade union activity exists in small-scale
enterprises, domestic servants and agricultural labour.

5. II]SMALL SIZE OF UNIONS
 The fact that any seven workers may form a union under
the Trade Union Act of 1926 and get it registered has
resulted in a large number of small unions.
 Women workers although form a substantial part of the
labour force were usually not allowed to join a trade
union.The trend has chenged.E.g.Self Employed Women’s
Association(SEWA) for the unorganised sector.
 Multiplicity of unions in an organisation also is the cause of
small size of the unions.

6. III]FINANCIAL WEAKNESS
 Workers are apathetic towards the unions and do not
want to contribute a part of their hard earned money
to it.
 Members make adhoc payments instead of regular
payments.
 In cases of multiplicity unions keep their fees
unusually low to attract members.

7. IV]MULTIPLICITY OF UNIONS AND
INTER-UNION RIVALRY
 The multiplicity of unions leads to inter-union
rivalries which ultimately cuts at the very root of
unionism, weakens the power of collective bargaining
and reduces the effectiveness of workers in securing
their legitimate rights.
 Therefore there should be one union in one industry.

8. V]LEADERSHIP ISSUE
 Indian trade union from its very inception was closely
associated with the freedom struggle of the country
and as such was dominated by national leaders.
 Prior to independence Gandhiji individualised the
trade union movement of the country.
 Subsequently after independence every political
party or groups have patronised a particular union and
provided it much desired leadership and support.

9. LEADERSHIP ISSUE(Contd…)
 It is distressing to note that even today most Indian
trade unions are in the clutches of outside leaders.
 These leaders happen to be totally strangers to the
workers and their trade unions.
 Also they hardly have any idea about the real problems
of the workers.
 The Govt. has tried to address this issue.

10. LEADERSHIP ISSUE(Contd…)
 The Govt. of India while drawing up the Scheme of
Workers’ Participation in October 1975 had laid down
a legitimate condition that no non-worker would be
allowed to become a member of the Shop Council or
Joint Council in any industrial enterprise.
 In the Scheme for the Representation of the Workers’
Representatives in the public sector enterprises the
same provision has been made.

11. VI]POLITICALISATION OF UNIONS
 One of the biggest problems that the country’s trade
union movement faces is the influence of political
parties.
 The trade unions which were formed to safeguard and
promote the social and economic interests of workers
have tended to become tools of party politics.

12. VII]RECOGNITION OF THE UNIONS
 The National Commission on Labour is of the opinion
that recognition of trade unions should be made
compulsory under a Central law in all undertakings
employing 100 or more workers.
 A trade union seeking recognition as a bargaining
agent from an individual employer should have a
membership of at least 30% of workers in that
establishment.

13. RECOGNITION OF THE UNIONS
(CONTD…)
 The minimum membership should be 25%, if
membership is sought for an industry in a local area.
 Where there are multiple unions contending for
recognition the one with more number of followers
would be recognised.

14. THANK YOU