Page 20 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 1: Understanding the Nature and Scope of Human Resource Management

against the injustice and exploitation meted out to workers by the owners of Capital during the Notes
course of industrialization. Labour movement in many countries started its own political parties
and engaged in struggle at both the political and economic fronts. Gradually, over the years, the
labour class got integrated into the larger society with the acceptance of their demands by the
employers, first for collective bargaining and then for worker's participation in management.
This led to their rise to prominence and power in industry and society in the 20th century. But
trade unions witnessed significant loss of membership during the 1980s and 1990s. Various
reasons for the loss of control of labour tradition could be analyzed as follows:
1. Trade union developed not under the leadership of workers but under the leadership of
outsiders that is social workers and nationalist leaders. It was led by political leaders.
Moreover, the political leadership was internally divided on ideological lines.

2. Governments increasingly took upon themselves the wage-welfare functions of trade
unions for which it passed a plethora of labour legislations, protecting jobs of workers
and also providing for various welfare measures. This, however, further weakened trade
unions and impeded the growth of the system of collective bargaining in the industry.
In fact, even though India has probably the largest number of labour laws in the world, it
does not have a central law that provides for the recognition of trade unions.
3. There has been significant change in the social composition of the labour force. A new
generation of workers has emerged in their industries since the mid 50s or so, who are
largely from upper castes and who are also young, educated and urban in origin. To them,
a trade union constitutes not a movement, but an agency which has to provide them
services in return for their subscription and political support. They leave a union when it
is unable to provide them benefits and join those who promise to give them these benefits.
Consequently, inter-union rivalry is high and the recognized unions particularly face
difficulty in retaining the support of workers on a continuing basis.
4. In fact, rising unemployment and underemployment and increasing price have hit the
working class hard. Such a situation not only makes the workers primarily interested in
questions of job security, pay and other material rewards that is to strive for consumption,
which is conspicuous by its nature. This, in turn, makes them more individualistic.
5. The majority of Indian organizations are small and medium-sized and consequent size of
trade unions in these enterprises has to be small. The political fragmentation of the union
movement also contributes to its small size. This small size of unions also accounts for
their poor financial strength.

6. The nature of linkage between unions at different levels and political parties varies a great
deal from complete 'ownership' of unions by particular to allowing of different degrees of
autonomy to unions by parties like congress party.
However, despite various weaknesses, unions in India often enjoyed considerable power at
both the national and bargaining levels, especially till the early 1970s or so, because of their
linkage with political parties and the support they got from the governments in power.

Reasons for the Failure

1. Development under outside leadership.
2. Government took upon itself Wage-Welfare function and passed number of labour laws
which weakened the trade unions.
3. Significant changes in social composition of labour force took place.
4. Rising unemployment and increasing price made unions more individualistic.

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