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Home / IAS Preparation / Labour And Trade Union Movements

Labour And Trade Union Movements In British India

Last Updated on Jun 22, 2023
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Labour and trade union movements in British India shaped the course of history. Workers sought fair treatment, better wages, and improved working conditions. 

In this article, we will learn about Labour and trade union movements in British India. This forms a significant part of the UPSC IAS exam. UPSC Prelims and UPSC Mains Paper I have many questions about this topic. It is also an important topic for UPSC History Optional and essential for the UGC NET History exam. Every year over 5-7 questions on political history are in the question paper.

Background And History Of Trade Union In India

Labour and trade union movements in British India were crucial for workers. They faced terrible conditions in places like factories and plantations. Sadly, both British and Indian entrepreneurs didn't want to make things better. When World War I happened, fewer ships were available, so India couldn't import as much. However, Indian trade and industry still grew a lot. But as prices went up, workers' incomes couldn't keep up. This made them really angry. Some nationalist leaders wanted to get the workers on their side, so they gave them guidance. The Russian Revolution in 1917 showed workers that a new social order was possible. After World War I, the International Labour Organisation (ILO) was formed. It protected workers and helped unions form in India.

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Trade Union Movement In India

There were several stages of labour and trade union movements in British India.

First Stage (1875-1918) 

The start of labour and trade union movements in British India can be traced back to the start of cotton mills in 1850s. Throughout the first stage of labour and trade union movements in British India, no trade unions were formed, and no real steps were taken, with the exception of a few enlightened leaders convening meetings to submit memorandums and representations to government-appointed commissions and committees.

The First Factory Act And Commission 

In 1875, the first Factory Commission was formed in Bombay to address the problems in factories. To tackle these issues, the first Factory Act was passed in 1881. Here are the main rules of the Act:

  • No child under the age of seven could be employed.
  • Children aged seven to twelve could only work for nine hours a day.
  • Children were not allowed to operate dangerous machinery or work in two different factories on the same day.
  • Workers had four days off each month and a one-hour break during their working hours.
  • While there were no restrictions on adult workers, measures were put in place to protect them from dangerous machinery and to report any accidents.
  • The government-appointed supervisors ensure the effective implementation of the law

Second Factory Commission And Act 

In 1884, a new Factory Commission was created, and Mr Lokhande organised a meeting for workers in Bombay. They prepared a letter to give to the Factory Commission. This marked the beginning of labour and trade union movements in British India. In the letter, they asked for several things, including a day off every week, a short break during work, compensation for any injuries, payment of wages on the 15th of each month, and a limit on working hours from 6 AM to 6 PM. However, the second Factory Act in 1891, based on the recommendations of the second Factory Commission, was disappointing. It only made a few changes, like giving women and children a weekly holiday and fixing their working hours, but men's working hours remained unregulated.

Second Stage (1918–24) 

Several trade unions were formed during the second stage of labour and trade union movements in British India. 

  • The Madras Labour Union (1918) was India's first modern trade union. Mr B.P. Wadia, an enthusiastic member of the Home Rule Movement, worked hard to build it. Many unions were formed in various locations.
  • N.M. Joshi and others founded the All India Trade Union Congress (AITUC) in Bombay in 1920, and it was connected with 64 trade unions with over 1,40,000 members. Lala Lajpat Rai presided over its first session in 1920. While the respective unions looked after the interests of workers in various industries, the AITUC looked after the interests of all workers.
  • A huge number of strikes accompanied the development of trade unions.
  • Workers want a wage raise, a bonus, a rice allowance, a reduction in working hours, and additional holidays.
  • Another significant element of trade unionism in India during this period was its inability to make significant progress in well-established industrial industries such as mining, textile, jute, and so on. However, it was robust and stable among individuals referred to as "white-colored employees."

Third Stage (1924–34)

During this period of labour and trade union movements in British India, Congress made a decision in 1922 that allowed its employees to join trade unions. 

  • But later, the influence of communists grew stronger. Some leaders had close connections with Moscow, while others had ties with trade unions and labour parties in the United Kingdom and Europe.
  • In 1928, the Communists launched a strong attack on the AITUC, but their candidate lost to Jawaharlal Nehru. However, the Communists had a big victory with the Bombay textile strike in 1928.
  • There were disagreements among trade unionists, with some supporting the radical ideas of Moscow and others wanting to keep the movement separate from communists. This caused a divide between the Congress and the Communist supporters.
  • The Trade Union Act of 1926 was a significant achievement for the trade union movement. It allowed unions to register voluntarily and provided certain rights and benefits in return for meeting certain requirements. Towards the end of this period, efforts were made to unite different labour unions.

Whitley Commission (1929–1931)

The Whitley Commission on Labour, or more precisely, the Royal Commission on Labour, was established in 1929 under the chairmanship of John Henry Whitley. The commission, which issued its findings in 1931, had six Indians: Srinivas S. Sastri, Ibrahim Rahimtoola, Kabeer-ud-Din Ahmed, G. D. Birla, N. M. Joshi, and D. Chaman Lall. Its purpose was to investigate the current working conditions in India's industrial enterprises and plantations.

The following suggestions were made by the commission:

  • Standardised salaries should be implemented in Bombay cotton mills, and early efforts should be taken in the jute industry, both for time and piece workers.
  • Three solutions were proposed to improve ties between management and employees: the foundation of stable trade unions, the employment of labour officials, and the formation of works committees. It also advocated for the establishment of conciliation officers to mediate solutions between parties in the early phases of a dispute.
  • The commissions also dealt with transport services, public works contracts, fines and deductions, compensation, recruitment of labour for tea gardens in Assam, mining and railways, labour legislation, and working conditions in industries and unregistered factories. It had a huge impact on labour and trade union movements in British India.

Fourth Stage (1935–39) 

Union activity was restored, and strikes increased during the fourth stage of labour and trade union movements in British India. There are several causes for the rebirth of union activity during this time period:

  • The Provincial Congress Ministries, established by the Government of India Act of 1935, pursued a policy of maintaining industrial peace not by suppressing labour organisations and denying their demands but by prescribing minimum standards of living and general citizenship rights.
  • The Act of 1935 established labour or trade union seats for the election of labour representatives.

Fifth Stage (1939–45)

The fifth stage of labour and trade union movements in British India was complex. World War II provided Indian industries with unprecedented security.

  • Foreign goods were denied access to the Indian market, in part due to a lack of transportation infrastructure and in part due to the conversion of British companies in India and elsewhere from peacetime to wartime output. 
  • As a result, Indian industries increased their activities. India's industrial production grew and set new records. However, prices grew quickly, and inflation prevailed as a result of the United Kingdom's ongoing acquisition of sterling securities in India. Profits increased rapidly, but salaries remained stagnant.
  • Overall, the importance of trade unions was increased. A permanent tripartite collaborative mechanism comprised of government representatives, labour union leaders, and employers was established. And, under the National Service Ordinance of 1940, workers' rights were preserved while it was made plain that it was their obligation to work.

Sixth Stage (1945–47)

The sixth stage of labour and trade union movements in British India was also distinguished by an increase in trade unionism. In the post-war period, the growth in prices and the expense of living showed no signs of abating. 

  • During this time, the country's political developments aided the expansion of trade unionism. Every political party desired a foothold in the labour movement in British India. Another significant element of the trade union movement during this time period was the increase in the number of women union members. As a result, their standing in trade unions and society grew significantly.
  • A vast number of smaller unions were formed. However, these small and local unions were unable to carry out effective collective bargaining or assure the successful execution of awards and agreements as employee groupings grew powerful and centrally coordinated. This demanded the development of new interstate and regional labour organisations.
  • As a result, the number of strikes rose. In terms of industrial disputes, the leading states were Bombay and West Bengal, followed by Madras and Uttar Pradesh.
  • The Government of Independent India was concerned because escalating agitation caused a drop in industrial production. As a result, in December 1947, an Industries Truce Conference was established, which was attended by government, labour, and business representatives. 
  • This appeased the workers, who accepted the government's policy of mandatory conciliation and arbitration, and the Industrial Disputes Act of 1947 (which provided for the appointment of conciliation machinery) was passed.

Conclusion

The labour and trade union movements in British India fought for workers' rights, leading to lasting improvements. These movements played a vital role in the struggle for independence and shaped labour laws. Their legacy continues to resonate today.

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Labour And Trade Union Movements In British India FAQs

The main goals were to improve working conditions, secure better wages, and fight for workers' rights.

The All India Trade Union Congress (AITUC) and the Indian Trade Union Movement (ITUM) were prominent organizations.

Yes, the labour movement in India played a crucial role in the fight against British rule and the quest for independence.

They led to the introduction of labour reforms and legislation, providing legal protections for workers.

It influenced the formulation of labour laws and continued to advocate for workers' rights in independent India.
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