This essay has two main objectives: (a) to present a history of Indian industrial relations, broadly understood as the changing relationships between workers, trade unions, employers, the economy and the state; (b) to posit a political economy of trade unionism in India.
The evolution of trade unionism (and industrial relations in general) is described in terms of the
“four phases of unionism”. This corresponds with structura l changes in the economy and we trace the effect of these changes on labour markets as well as on the (very broadly defined) industrial relations arena. The first phase (1950 to mid-1960s) corresponds to an era of state planning and import substitution, when public-sector employment and public-sector unionism rose phenomenally.
Unions and bargaining structures were highly centralized; the two main federations were the nationalist Indian National Trade Union Congress and the communist All India Trade Union
Congress. State intervention in the determination of wages and working conditions was the norm and “state-dominated pluralism” was the labour regime during this first phase.
The second phase (mid-1960s to 1979) is associated with a period of economic stagnation and political turmoil. Employment slowed down, there were massive inter-union rivalries, and industrial conflict increased. Centralized ba rgaining