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Collective Bargaining in India-
        Recent Trends




             Surendra Pratap
        Asia Monitor Resource Centre
Introduction
•Collective bargaining is actually a struggle for
building a democratic and civilized society
•We can not imagine a civilized society without
independent sectional organizations and
political parties representing the overall socio-
economic-political interests of the masses
• Whenever capitalist development moved
  forward at extraordinarily speedy rate, most
  autocratic regimes ruled the states
• Seems most of the third world countries have
  entered in a similar phase
• Liberalization and Globalisation means- state
  acting as corporate agent to remove all barriers
  for capital accumulation and mobility of capital
• Therefore suddenly in almost all the third world
  countries, an all-round attack on right to
  organizes and collective bargaining
Structure of Work force
• > 97 % enterprises in informal sector; 3% formal sector
• T. Employment: 396 million in 2000 to 456 million in 2005)
• Informal sector: 393.2 million (86 percent)--Agriculture:
  251.7 million
• self-employed (63%), regular wage workers (17%) and
  casual 20 %
• Formal sector employment increased from 54.9 to 62.6
  million; but formal employment increased only from 33.6
  million to 35.0 million
• 70,000 registered unions (politically affiliated and
  independent) and non-registered organizations
• Total verified membership about 2.5 crore (25.5 million)
  about 30% of it represented by agricultural workers
• Union density in India only 8 percent
Labour Legislations in India
1. Laws for regulating Conditions of Service
• The Factories Act, 1948---10 or more workers (Crèche: if 30 or more
   women; rest room: if 150 or more workers; canteen: if 250 or
   more workers; ambulance, dispensary, and medical and para-
   medical staff: if 500 or more workers).
• Mines Act, 1952; Beedi and Cigar Workers (Conditions of
   Employment) Act, 1966; Building and Other Construction Workers Act
   1995; Motor Transport Workers Act 1961; Plantation Labour Act
   1951; Working Journalists (Conditions of Service) and Miscellaneous
   Provisions Act 1955; Sales promotion Employees (Conditions of
   Service) Act 1976; Apprentices Act 1961; Inter State Migrant
   Workmen (Regulation of Employment and Conditions of Service) Act
   1979
• Weekly Holidays Act 1942
• Contract Labour (Regulation) Act 1970
• Shops and Establishment Acts of various States (establishments
   not registered under Factories Act)
Labour Legislations in India
2. Labour Relations Laws
• a) Trades Union Act, 1926 (7 or more workers)
• b) Industrial Disputes Act, 1947 (Procedural aspects to all workers;
   Chapter V B: 100 or more workers, VA: 50 or more workers)
• c) Industrial Employment (Standing Orders) Act, 1946: (100 or more
   workers----in some states 50 or more, only in UP-10 or more)
3. Wage Laws:
• Minimum Wage Act 1948 (all workers)
• Payment of Wages Act 1936; (10 or more workers, < Rs 1600 pm)
• Payment of Bonus Act 1965; (20 or more workers, < Rs 3500 pm)
4. Labour Laws regarding Human Rights:
• Child Labour (Prohibition and regulation) Act 1986; The Children
   (Pledging of Labour) Act; Bonded Labour System (Abolition) Act 1976
• Equal Remuneration Act 1976.
Labour Legislations in India
5. Social Security Laws:
• Employees’ Provident and Miscellaneous Provisions Act
   1952: (if 10 or more workers)
• Employees’ State Insurance Act 1948: (20 or more
   workers)
• Maternity Benefit Act 1961 (if 10 or more workers)
• Payment Gratuity Act 1972 (if 10 or more workers)
• Workmen’s Compensation Act 1923 (all workers)
• Unorganized Workers Social Security Act 2008 :
   (unorganized workers below poverty line)-       (National
   Old Age Pension Scheme, National Family Benefit
   Scheme, Scheme for protection during maternity, medical
   insurance schemes etc.)
Legal Boundaries for Collective
         Bargaining
• No ratification of ILO conventions-C-87
  and C-98
• Limited scope and coverage of R2A and
  CB with in legal boundaries of TU Act and
  ID Act
• TU Act and ID Act silent on the issue of
  recognition of trade unions
Legal Boundaries for Collective
          Bargaining
• Right to strike is not a fundamental right but a legal right
  governed by Industrial Disputes Act 1947.
• Section 10k: can be imposed to prohibit strikes or Lock-
  outs;
• section 22 : In Public Utility Services---strike notice of 6
  weeks
• Section 23: Prohibition of strikes during the pendency of
  conciliation, arbitration and court proceedings
• TU activities granted immunity from the applicability of
  CRPC but not in case of illegal strikes
CTUOs in India
• BMS - Bharatiya Mazdoor Sangh (far right political party BJP)-
  members: 6 million
• INTUC - Indian National Trade Union Congress (Congress Party),
  members: 3.8 million
• AITUC - All India Trade Union Congress (CPI)- members: 3.3 million
• HMS - Hind Mazdoor Sabha (independent-socialist) -members: 3.2
  million
• CITU - Centre of Indian Trade Unions (CPI-M) members: 2.6 million
• UTUC (LS) - United Trade Union Congress (Lenin Sarani) (SUCI)
• UTUC - United Trade Union Congress (Revolutionary Socialist Party)
• TUCC - Trade Unions co-ordination Centre (All India Forward Block)
• SEWA- Self-Employed Women's Association (independent)—recently
  listed
• LPF- Labour Progressive Front (DMK)—recently listed
• ICCTU- All-India Central Council of Trade Unions (CPI-ML-liberation)-
  recently listed
• INTTUC-Indian National Trinmool Trade Union Congress (All India
  Trinmool Congress)-recently listed
Further Shrinking the Space for
        Collective Bargaining
Amending the Trade union Act
• 10% or 100, whichever is less, subject to a
  minimum of 7 workmen members for
  registration—limiting no. of outsiders
• Banning the Strikes by using ESMA
• TN-ESMA in 2003: imposed on general
  strike of government and public sector
  employees- 170000 employees were
  dismissed-lastly reduced to 6074
Judicial Precedents Imposing Further Limitations
• General strike in Tamil Nadu (2003) TR Rangarajan vs
  Government of Tamil Nadu, AIR 2003 SC 3032):
  government employees have no fundamental right to strike
• Kerala geneal strike 1997: Bandhs (general Strikes) are
  illegal; Order of HC Kerala upheld by SC
• In 2004, Calcutta High Court delivered similar decision
Making SEZs and NMIZs Immune to Trade Union Actions
• All SEZs and NIMZs declared as public utility services
• Amendments proposed: applicability of protective sections
  of ID Act and CL Act, No outsiders in trade unions etc.
  Right to join unions in NMIZs – only to low paid workers
Declining wage share in India,
1993–2007            World of Work Report, ILO

                     2010
New Trends : 1

New wave of labour movement for unionization
• A new wave of workers struggle for unionization;
• Workers struggle in Graziano Transmissioni in Noida,
  NCR Delhi, Rico Auto Ltd and Sunbeam Auto Ltd in
  Gurgaon, Pricol in Coimbtore, Hyundai motors, Foxconn
  and Madras Rubber Factory in Chennai, Nestle in
  Uttarakhand, and Viva Global in Gurgaon etc.
Efforts to develop unity among the CTUOs resulted in
  Coordination Committee of eight CTUOs and the first joint
  action was successful all India strike on Nov 7, 2010.
Individualized Bargaining : Spurt in individualised
  bargaining mainly due to rampant informalisation
Strikes and Lockouts from 2002 to
2005                                        Labour Bureau, Government of India



   ITEM              2002           2003             2004        2005
   No. of Strikes      295            255          236          227

   No. of Workers      900,386        1,010,976    1,903,054    2,722,784
   Involved

   Man-days lost       9,664,537      3,205,950    4,828,737    10,800,686

  No. of Lockouts      284            297          241          229

   No. of Workers      179,048        804,969      169,167      190,817
   Involved

   Man-days lost    16,921,382     2,70,49,961     19,037,630   18,864,313
Strikes and Lockouts 2005-09
  www.livemint.com/2009/12/.../The-rise-of-the-new-proletaria.html
The case of Viva Global
• 400 male workers and 200 females workers in company --- demand
  for wage increment in April 2010 after minimum wages revised in
  January 2010--- stopped the work for two hrs every day April 8-10
• One worker dismissed---protest----15 workers taken in custody
• Workers started their efforts to form trade union
• Protest ended-demands fulfilled---minimum wage, formal contract-ESI
  and PF
• But Soon management started throwing out workers one by one
• Workers successfully registered union in May 2010; collectively
  protested against this move
• Aug 21: all contract workers thrown out-protest at the factory gate
• Management locked out the factory, regular workers also thrown out
• August 25: 20-25 local goons brutally attacked the factory workers
The case of Viva Global
• One worker was caught and abducted by the goons.

• Accounts of Abducted worker: “I was put in backside box
  of a car. Lastly the car stopped and the goons closed my
  eyes with some cloth before taking me out of the box.
  They took me to a house and hit me with whatever they
  had till they received directions on phone to take me to
  another place. Thereafter they took me to a jungle and
  threatened to kill me. But soon after they received
  directions on phone and therefore they again put me in
  the same backside box of the car and threw me out at
  Delhi-Gurgaon Border. As soon as I reached my
  residence from there, the police also reached there and
  took me to the Police Station and then to the hospital and
  from there I again came to the place where sit-in-protest
  of workers was going on.”
New Trends: 2

Informalisation and New Paradigm of CB
• Emphasis on Community organizing rather than at shop-
   floor; Collective Bargaining at Industry or National level
   rather than factory level; adopting more political forms of
   struggle than traditional union tactics
• In many industrial sectors, for example in garment-the
   situation provides only two options: individual bargaining or
   Industry level/national level bargaining and requires
   political forms of struggle
New initiatives to organize informal sector workers:
   Many local level unions of rural workers and also regional
   platforms of rural workers have started emerging—
   Particularly arround NREGA.
Thank You
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Collective bargaining india

  • 1. Collective Bargaining in India- Recent Trends Surendra Pratap Asia Monitor Resource Centre
  • 2. Introduction •Collective bargaining is actually a struggle for building a democratic and civilized society •We can not imagine a civilized society without independent sectional organizations and political parties representing the overall socio- economic-political interests of the masses
  • 3. • Whenever capitalist development moved forward at extraordinarily speedy rate, most autocratic regimes ruled the states • Seems most of the third world countries have entered in a similar phase • Liberalization and Globalisation means- state acting as corporate agent to remove all barriers for capital accumulation and mobility of capital • Therefore suddenly in almost all the third world countries, an all-round attack on right to organizes and collective bargaining
  • 4. Structure of Work force • > 97 % enterprises in informal sector; 3% formal sector • T. Employment: 396 million in 2000 to 456 million in 2005) • Informal sector: 393.2 million (86 percent)--Agriculture: 251.7 million • self-employed (63%), regular wage workers (17%) and casual 20 % • Formal sector employment increased from 54.9 to 62.6 million; but formal employment increased only from 33.6 million to 35.0 million • 70,000 registered unions (politically affiliated and independent) and non-registered organizations • Total verified membership about 2.5 crore (25.5 million) about 30% of it represented by agricultural workers • Union density in India only 8 percent
  • 5. Labour Legislations in India 1. Laws for regulating Conditions of Service • The Factories Act, 1948---10 or more workers (Crèche: if 30 or more women; rest room: if 150 or more workers; canteen: if 250 or more workers; ambulance, dispensary, and medical and para- medical staff: if 500 or more workers). • Mines Act, 1952; Beedi and Cigar Workers (Conditions of Employment) Act, 1966; Building and Other Construction Workers Act 1995; Motor Transport Workers Act 1961; Plantation Labour Act 1951; Working Journalists (Conditions of Service) and Miscellaneous Provisions Act 1955; Sales promotion Employees (Conditions of Service) Act 1976; Apprentices Act 1961; Inter State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979 • Weekly Holidays Act 1942 • Contract Labour (Regulation) Act 1970 • Shops and Establishment Acts of various States (establishments not registered under Factories Act)
  • 6. Labour Legislations in India 2. Labour Relations Laws • a) Trades Union Act, 1926 (7 or more workers) • b) Industrial Disputes Act, 1947 (Procedural aspects to all workers; Chapter V B: 100 or more workers, VA: 50 or more workers) • c) Industrial Employment (Standing Orders) Act, 1946: (100 or more workers----in some states 50 or more, only in UP-10 or more) 3. Wage Laws: • Minimum Wage Act 1948 (all workers) • Payment of Wages Act 1936; (10 or more workers, < Rs 1600 pm) • Payment of Bonus Act 1965; (20 or more workers, < Rs 3500 pm) 4. Labour Laws regarding Human Rights: • Child Labour (Prohibition and regulation) Act 1986; The Children (Pledging of Labour) Act; Bonded Labour System (Abolition) Act 1976 • Equal Remuneration Act 1976.
  • 7. Labour Legislations in India 5. Social Security Laws: • Employees’ Provident and Miscellaneous Provisions Act 1952: (if 10 or more workers) • Employees’ State Insurance Act 1948: (20 or more workers) • Maternity Benefit Act 1961 (if 10 or more workers) • Payment Gratuity Act 1972 (if 10 or more workers) • Workmen’s Compensation Act 1923 (all workers) • Unorganized Workers Social Security Act 2008 : (unorganized workers below poverty line)- (National Old Age Pension Scheme, National Family Benefit Scheme, Scheme for protection during maternity, medical insurance schemes etc.)
  • 8. Legal Boundaries for Collective Bargaining • No ratification of ILO conventions-C-87 and C-98 • Limited scope and coverage of R2A and CB with in legal boundaries of TU Act and ID Act • TU Act and ID Act silent on the issue of recognition of trade unions
  • 9. Legal Boundaries for Collective Bargaining • Right to strike is not a fundamental right but a legal right governed by Industrial Disputes Act 1947. • Section 10k: can be imposed to prohibit strikes or Lock- outs; • section 22 : In Public Utility Services---strike notice of 6 weeks • Section 23: Prohibition of strikes during the pendency of conciliation, arbitration and court proceedings • TU activities granted immunity from the applicability of CRPC but not in case of illegal strikes
  • 10. CTUOs in India • BMS - Bharatiya Mazdoor Sangh (far right political party BJP)- members: 6 million • INTUC - Indian National Trade Union Congress (Congress Party), members: 3.8 million • AITUC - All India Trade Union Congress (CPI)- members: 3.3 million • HMS - Hind Mazdoor Sabha (independent-socialist) -members: 3.2 million • CITU - Centre of Indian Trade Unions (CPI-M) members: 2.6 million • UTUC (LS) - United Trade Union Congress (Lenin Sarani) (SUCI) • UTUC - United Trade Union Congress (Revolutionary Socialist Party) • TUCC - Trade Unions co-ordination Centre (All India Forward Block) • SEWA- Self-Employed Women's Association (independent)—recently listed • LPF- Labour Progressive Front (DMK)—recently listed • ICCTU- All-India Central Council of Trade Unions (CPI-ML-liberation)- recently listed • INTTUC-Indian National Trinmool Trade Union Congress (All India Trinmool Congress)-recently listed
  • 11. Further Shrinking the Space for Collective Bargaining Amending the Trade union Act • 10% or 100, whichever is less, subject to a minimum of 7 workmen members for registration—limiting no. of outsiders • Banning the Strikes by using ESMA • TN-ESMA in 2003: imposed on general strike of government and public sector employees- 170000 employees were dismissed-lastly reduced to 6074
  • 12. Judicial Precedents Imposing Further Limitations • General strike in Tamil Nadu (2003) TR Rangarajan vs Government of Tamil Nadu, AIR 2003 SC 3032): government employees have no fundamental right to strike • Kerala geneal strike 1997: Bandhs (general Strikes) are illegal; Order of HC Kerala upheld by SC • In 2004, Calcutta High Court delivered similar decision Making SEZs and NMIZs Immune to Trade Union Actions • All SEZs and NIMZs declared as public utility services • Amendments proposed: applicability of protective sections of ID Act and CL Act, No outsiders in trade unions etc. Right to join unions in NMIZs – only to low paid workers
  • 13. Declining wage share in India, 1993–2007 World of Work Report, ILO 2010
  • 14. New Trends : 1 New wave of labour movement for unionization • A new wave of workers struggle for unionization; • Workers struggle in Graziano Transmissioni in Noida, NCR Delhi, Rico Auto Ltd and Sunbeam Auto Ltd in Gurgaon, Pricol in Coimbtore, Hyundai motors, Foxconn and Madras Rubber Factory in Chennai, Nestle in Uttarakhand, and Viva Global in Gurgaon etc. Efforts to develop unity among the CTUOs resulted in Coordination Committee of eight CTUOs and the first joint action was successful all India strike on Nov 7, 2010. Individualized Bargaining : Spurt in individualised bargaining mainly due to rampant informalisation
  • 15. Strikes and Lockouts from 2002 to 2005 Labour Bureau, Government of India ITEM 2002 2003 2004 2005 No. of Strikes 295 255 236 227 No. of Workers 900,386 1,010,976 1,903,054 2,722,784 Involved Man-days lost 9,664,537 3,205,950 4,828,737 10,800,686 No. of Lockouts 284 297 241 229 No. of Workers 179,048 804,969 169,167 190,817 Involved Man-days lost 16,921,382 2,70,49,961 19,037,630 18,864,313
  • 16. Strikes and Lockouts 2005-09 www.livemint.com/2009/12/.../The-rise-of-the-new-proletaria.html
  • 17. The case of Viva Global • 400 male workers and 200 females workers in company --- demand for wage increment in April 2010 after minimum wages revised in January 2010--- stopped the work for two hrs every day April 8-10 • One worker dismissed---protest----15 workers taken in custody • Workers started their efforts to form trade union • Protest ended-demands fulfilled---minimum wage, formal contract-ESI and PF • But Soon management started throwing out workers one by one • Workers successfully registered union in May 2010; collectively protested against this move • Aug 21: all contract workers thrown out-protest at the factory gate • Management locked out the factory, regular workers also thrown out • August 25: 20-25 local goons brutally attacked the factory workers
  • 18. The case of Viva Global • One worker was caught and abducted by the goons. • Accounts of Abducted worker: “I was put in backside box of a car. Lastly the car stopped and the goons closed my eyes with some cloth before taking me out of the box. They took me to a house and hit me with whatever they had till they received directions on phone to take me to another place. Thereafter they took me to a jungle and threatened to kill me. But soon after they received directions on phone and therefore they again put me in the same backside box of the car and threw me out at Delhi-Gurgaon Border. As soon as I reached my residence from there, the police also reached there and took me to the Police Station and then to the hospital and from there I again came to the place where sit-in-protest of workers was going on.”
  • 19. New Trends: 2 Informalisation and New Paradigm of CB • Emphasis on Community organizing rather than at shop- floor; Collective Bargaining at Industry or National level rather than factory level; adopting more political forms of struggle than traditional union tactics • In many industrial sectors, for example in garment-the situation provides only two options: individual bargaining or Industry level/national level bargaining and requires political forms of struggle New initiatives to organize informal sector workers: Many local level unions of rural workers and also regional platforms of rural workers have started emerging— Particularly arround NREGA.