Trade unionism, once a formidable force respected by employers, governments, and workers alike, has waned amid lacklustre leadership, corruption, criminal infiltration, and, most importantly, uninspiring leadership. Even the Supreme Court of India had some unpleasant things to say during a recent court hearing.
The rise of private-sector enterprises, including banking, IT/ITES, and gig economies, dealt a further blow to the relevance, as new-age workers and professionals distrust unions, perceiving them as ineffective and ideologically rooted in ideas that no longer appeal. Ideological moorings and organizational vigor of the unions have eroded.
Even in sectors where Unions are present, their effectiveness in representing workers’ and officers’ interests is diminished. Management and the government don’t take them seriously. Union’s fading away has created an imbalance, and this imbalance leaves employer-employee relations asymmetrically tilted, underscoring the need for countervailing power- a principle echoed by John Kenneth Galbraith: “In the absence of countervailing power, the power of the employer is unchecked.”
When unions lose relevance, power doesn’t disappear — it simply concentrates.
Contemporary Challenges
Unions have faltered on key demands, such as banking sector advocacy for a five-day workweek; their inability to check rampant hire-and-fire practices disregarding employee rights has left the young workers at the mercy of employers. In the modern workplace, the unions have not been able to have any say whatsoever in organisations setting up arbitrary performance standards and benchmarks, the use of dubious bell-curve distributions, and the firing of employees has been normalised in the name of performance. No consideration is given to performance-enabling factors, and every year the banking and IT/ITES sectors ask 10-15 percent of the workforce to leave. Mostly, these are the foot soldiers and junior-level managers who don’t have any say or any voice to raise their concerns.
Performance cannot become a euphemism for disposability.
The unions have not questioned the organisations on the inadequacy of training systems, hiring and firing practices, and authoritarianism.
Recent labor codes offer scant protections for employees and mid-level officers. There is no protection or support in case of job losses for workers and employees, irrespective of the level or duration of service. This leaves a very young workforce at the mercy of management with no recourse. Millions of workers lose their jobs, and many struggle to find alternative employment. While a growing economy does absorb some, a significant segment struggles. Without financial support, they go through tremendous hardships. Suddenly, the worker and the dependents find themselves in a state of complete despair. Children struggle to continue their education while the sick and elderly go without medical care. Since the state offers zero support, these families go through tremendous pain and suffering.
Another area of concern is employees retiring from private sector organisations. Apart from the Provident fund, there is no significant financial support or protection for employees retiring from private sector organisations. No medical benefits, negligible or zero pension benefits, and further this segment has no voice in the absence of effective Trade Unions or Professional associations.
A nation that ignores its private-sector retirees creates invisible insecurity at scale.
Historical Precedents
India’s trade union history features notable successes and failures. Early triumphs include Narayan Meghaji Lokhande’s Bombay Mill-Hands Association (1884), which secured Sunday holidays through mass rallies and submissions to the Factory Commission. George Fernandes advanced the wages and rights of transport workers through strikes like the 1968 BEST action.
However, there are notable failures as well. Datta Samant’s 1982-83 Mumbai textile strike mobilized 250,000 workers; it lasted 18 months, shuttering mills, causing mass unemployment, and catalyzing shifts in urban real estate. The 1974 nationwide railway strike, led by Fernandes, paralyzed transport yet ended in 30,000 dismissals, 50,000 prosecutions, and governmental crackdowns without enduring gains. The 2012 Maruti Manesar violence stemmed from union recognition disputes, resulting in a general manager’s death, convictions of 31 workers, and entrenched management dominance.
India does not need louder unions — it needs wiser, modern, and value-anchored ones.
Path Forward
There is a need for modern trade Unions that can attract new-age workers and professionals capable of understanding their struggles, aspirations, and challenges. There is a need for a body that can effectively represent their voice. Similarly, the large number of workers retiring from private companies needs a strong voice. The government has so far not considered the special needs of private-sector retirees. While the Government sector retiree gets adequate and sometimes more than disproportionate pensions and benefits, the private sector retiree is not even in the lens of decision makers. Such imbalances need correction, and hence, a powerful voice is necessary.
The trade unions need to reimagine their leadership, structures, and agendas to embrace new-age workers, professionals, and gig workers. They need to take care of the retirees. The Unions need to bring in industry experts, academics, and apolitical advocates, and prioritize values over partisanship. The Trade Unions need to restore their relevance and forge new partnerships. Such renewal is vital for the health, safety, security, and well-being of the country’s young workforce, mid-level managers, and private sector retirees. The collective voice of Unions is also needed to counterbalance government and employer dominance in India. The space can’t be left vacant and at the mercy of the government and employers. We need new-age Unions for the country’s young and old workforce.
The space of collective voice cannot be left vacant.
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