Procedural Modeling

Abstract

This paper examines the role of organized labour in India in a structuraland historical context. It attempts to trace the economic, politicaland social effects of the trade union movement and its strategiesover time. These effects are felt at enterprise- and/or firm-level,industry-level, regional and national level. First we consider theeffect of changing economic conditions on the evolution of tradeunions and bargaining institutions in largely urban labour marketsin the post-independence period (1947 onwards). Some contemporaryissues affecting the organized labour movement in India today arethen discussed. This essay has two main objectives: (a) to presenta history of Indian industrial relations, broadly understood as thechanging relationships between workers, trade unions, employers,the economy and the state; (b) to posit a political economy of tradeunionism in India. The evolution of trade unionism (and industrialrelations in general) is described in terms of the �four phases ofunionism�. This corresponds with structura l changes in the economyand we trace the effect of these changes on labour markets as wellas on the (very broadly defined) industrial relations arena. Thefirst phase (1950 to mid-1960s) corresponds to an era of state planningand import substitution, when public-sector employment and public-sectorunionism rose phenomenally. Unions and bargaining structures werehighly centralized; the two main federations were the nationalistIndian National Trade Union Congress and the communist All IndiaTrade Union Congress. State intervention in the determination ofwages and working conditions was the norm and �state-dominated pluralism�was the labour regime during this first phase. The second phase (mid-1960sto 1979) is associated with a period of economic stagnation and politicalturmoil. Employment slowed down, there were massive inter-union rivalries,and industrial conflict increased. Centralized ba rgaining institutionsnow started feeling the pressure of dissent from below, and boththe Hind Mazdoor Sabha and the Centre of Indian Trade Unions madesignificant progress in the labour movement. The crisis culminatedin the May 1974 railway strike that was followed by the 1975-77 EmergencyRegime of Mrs. Gandhi. An �involuted� pluralism dominated Indianlabour relations during this second phase. The third phase (1980-1991)corresponds to a period of segmented and uneven economic development.Decentralized bargaining and independent trade unionism enter thestage in a significant way. Two major str ikes (the 1980/81 Bangalorepublic-sector strike and the 1982 Mumbai textile workers strike)mar ked this phase, and inter-state and inter-regional variationsin the nature of labour-management regimes became much wider. Inthe more profitable economic sectors the unions gained, but in theunorganized and declining sector, workers lost out and unions wereleft with few strategies. Finally, the fourth phase of unionism (asyet incomplete, 1991-2000) represents the posteconomic reform period.The stabiliza tion and structural adjustment programmes led to demandsfor increased labour market flexibility, especially employment flexibility.This has led to a recruitment freeze in many public sector sites,and unions in these sectors now have to cope with competition atlocal level. In non-viable public enterprises, unions are comingto terms with �voluntary� retirement schemes. In the early yearsof economic reform there were sincere attempts by all parties toengage in tripartite consultations, but there now seem to be severalbarr iers to this form of engagement.