Indian Trade Unions need to reform themselves to remain relevant

The latest nationwide strike call failed to get good response

- BY NANTOO BANERJEE

Trade unionism seems to have lost focus in India. It has failed to reform itself to keep pace with economic reforms and globalisation, and changing job scenarios. It is also facing the biggest leadership crisis.

The poor public and industry response to the nationwide strike call by 10 central trade unions on July 9 once again exposed the irrelevance of such an action in a country where the informal sector employs nearly 44 crore workers today, representing 85 percent of the total workforce. The informal sector encompasses a wide range of activities and workers, including those in agriculture, construction, small factories, domestic work, and various other self employed and micro-enterprise roles. Workers in this sector don't enjoy job or wage protection. As a result, the old-style trade unionism has become irrelevant in the present-day scenario.

The so-called central trade unions exist mostly in the public sector where they play some constructive role in the collective bargaining, especially for periodical wage settlement. The shrinking public sector is a matter of concern to them. However, they could do little when the government decided to hand over the control of the country's largest petrochemical company, Indian Petrochemicals Corporation Limited (IPCL), a highly profit-making public sector enterprise, to the Ambani group's Reliance Industries. The central TUs also made no attempt to prevent total privatisation of Bharat Aluminium (BALCO) in favour of Anil Agarwal-promoted Sterlite Industries (now Vedanta Limited). Even before the total privatisation of IPCL and BALCO, the government sold the prestigious Videsh Sanchar Nigam Limited (VSNL) to the Tata group. The company has been renamed as Tata Communications. Where were the leaders of the central TUs, then?