Advantages And Disadvantages Of Trade Union In India

While the Indian economy is showing a steady progress, the irony is that the labour market, which is a key factor in attaining this progress is not partaking in this progress. Neither is the rate of employment, which is not in accord with the increasing working age population, nor do the wages match the inflation rate. The present situation of the Indian labour sector could be attributed to a lot of factors like the boom and bust and the integration of the world economy, but the major player is the culture that imbues the labour markets. This culture, which we refer to here, is a result of the complex and half-baked laws that control the labour market in India.
The policies implemented by the Government are very shortsighted. The government’s
However, the problem is that here is no provision, which bans the participation of outsiders in trade union activities. It leads to chaos and complications when politicians and lawyers become the office bearers of the union. This concept of outsiders being office bearers of a trade union does not exist in other countries . Comparing the trade union activities in Singapore, which mainly encourage production, that of India usually restricts productivity and economic growth .
There are numerous examples to show that the trade union activities are one of the biggest reasons why employers incur heavy monetary losses.
One of the notable instances is that of HIND MOTOR PLANT, west Bengal. Here the trade union’s strike that lasted for over a month and the company lost almost 30% of its production . Similarly in 2004-2005, Honda motorcycles and scooter co. lost more than 120 Crore Rupees in merely 2 to 4 months.
Hence the point is that the maybe strikes and protests are a important feature of collective bargaining and also to strengthen the position of the employee, but today it can be seen that these powers are being misused by the trade unions is not just costing a lot in monetary terms but it encourages violence
This is only possible if the legislations are made less complicated and flexible for the employer too. This could also solve a lot of other internal matters, which are faced by the workers. One of the major concerns of the employees is regarding his or her social security. How can all the workers of India be socially secure if 94% of them are still working in the unorganized sector?

SO IS FORMALISATION OF THE INFORMAL SECTOR THE ANSWER?
Well maybe in the long run, yes. However as we noticed above that the major reasons why business shift to informal sector is due to the inflexibility of the labour legislations. There needs to be a balance between the powers and privileges of the employers as well as the employees.
An emerging balance can be seen in the reforms proposed by the Modi Government. His propositions don’t only protect the employees but also incentivize the employers by making the legislative compliances less