Labour laws and Regulation of Trade Unions: A general structure by Bishal Basak


Labour law is the area of law which signifies the relationship between a worker, trade union and government at large. It plays a major important role in protecting the rights of labour, their union, their wages, and moreover building a link between government and workers. It is a protective code for laborers, workers, and employees as well, to make them aware of their rights and also, to establish a standard law regarding labour work practice. Labour law is often incorrectly conflated with Employment law. However, Employment law is the area of law that specifically deals with the relationship between an employer and employee.

Labour law is concerned with the establishment of a labour-relations framework that provides peaceful industrial relations between labours and organized workers.

Keywords: Labour, workers, rights


Labour (man power) means human contribution for producing goods or rendering of services. It is an important factor of production. Human beings putting their physical and mental efforts in the process of production. Productive or efficient use of labour force helps to bring down the loss per unit of a product or service.

Remuneration is the reward for efforts and services put in by employees. A concern gets services from the employees and pays remuneration to them in turn.

Meaning of labour law:

  • Labour law itself is a branch of law
  • Labour law is law relating to industry and employment
  • This law relating to Industrial Relation
  • Labour law consist of body of Laws, rules, regulations and precedents, which govern the employment relationship.

Sources of Labour Law:

  • Indian Constitution
  • International conventions like the International Labour Organization (ILO)
  • The labour Legislation where also enacted keeping in mind the international standards on Human Rights.
  • Legislation;
  • Judicial precedent (Judicial decision), including arbitration awards.

Kinds of Labour Law:

  • Individual Labour Law: It regulates relationship between employer and employees only
  • Collective labour law: It deals with an regulates the relationship between employer and employees and trade unions and organizations.

Objectives of Labour Law:

  1. Immediate objective:
  2. To save guard the workers against exploitations.
  3. To maintain proper relationship between employers and employees.
  • To provide and improve the wellbeing, resource of workers.
  1. To settle this industrial disputes.
  2. Ultimate objective:
  3. To preserve peace and harmony in a industry
  4. To boost individual, social and national economy
  • To maintain peace, law and order
  1. Healthy labour and management relations.
  2. Industrial peace and settlement of all disputes in such a way that there are no labour problems like strikes or lockouts.

Importance of labour laws:

  • They deal with worker’s wellbeing in the office. For example, working hours, maternity leave, hiring and firing of workers, union formations, pensions etc.
  • It harmonizes the relation between employer and employees
  • The final goal of labour law is to bring both employer and employee at same level by settlement of conflicting issues between them

Functional areas of labour law:

Labour law broadly covers:

  • Industrial Relation: It is related to certification of unions, labour management relations, collective bargaining and unfair labour practices
  • Work place help and Safety: It is related to health and safety of workers
  • Employment Standards: It is related to holidays, annual leave, working hours, unfair dismissals, minimum wages, layoff procedures and severance pay.

Needs of Labour Legislation

  • Protects workers from profit seeking exploiters.
  • Promotes cordial industrial relations between employers and employees
  • Preserves health safety and welfare of workers
  • Protects interest of women and children working in a factory

Principles of Labour Legislation:

  • Social justice
  • Economic justice
  • National economy
  • International conventions

Various Acts under labour laws are as follows:

  • The factories Act
  • The Workmen’s Compensation Act
  • The Trade union’s Act ,1926
  • The Payment of Wages Act
  • The Employment of Children Act
  • The Employees State Insurance Act
  • The employees Provident fund Act
  • The payment of Gratuity Act
  • The Contract Labour Regulation and Abolition Act, 1970
  • The Bonded Labour System
  • Equal remuneration Act 1976

Constitutional Provisions:

Part III: Fundamental Rights

  • Article 14: Equality before the Law and equal protection of the laws
  • Article 15: no discrimination on the grounds of sex, caste, religion, colour, race and place of birth.
  • Article 16: Equal opportunity in employment (on discrimination on the grounds discussed in article15)
  • Article 23: Strictly prohibits all sorts of Trafficking and forced labour.
  • Article 24: Strictly prohibits child labour (below 14 years old) in hazardous factory / industry.

Part IV: Directive Principles of State policy

  • Article 38 (1): Every state needs to promote welfare of the people
  • Article 38 (2): Every state should minimize the inequalities in income
  • Article 42: It insures human conditions of work and maternity relief
  • Article 43: Secure a living wage, a decent standard of living and social and cultural opportunities for all workers.

Labour Policy of India:

Following are the measure policies:

  • Innovative measures to captivate public and private investment.
  • Creating new jobs.
  • Contemporary schemes for social security provided to the workers in the unorganized sector
  • Social security cards for workers
  • Amalgamated and useful management of funds of Welfare Boards
  • Reconfiguration and issuance of funds to benefit vulnerable workers
  • Long term settlements based on productivity
  • Crucial industries and institutions declared as ‘public utilities’
  • Special conciliation mechanism for projects with investments of rupees 150crores or
  • more
  • Industrial Relations committees in more sectors
  • Labour law reforms in tune with a times. Empowered the body of experts to suggest required changes.
  • Statutory amendments for expediting and streamlining the mechanisms Labour Judiciary
  • More labour sectors under Minimum Wages Act
  • Child Labour Act to be aggressively enforced
  • Modern medical facilities for workers
  • Rehabilitation packages for displaced workers
  • Restructuring in functioning of employment exchanges. Computerizing and updating of database

Nature of trade unions:

The Trade Unions Act, 1926 provides for registration of trade union with a view to render lawful organization of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges

Trade Unions Act 1926 defines a trade union as a combination, whether temporary or permanent formed for the purpose of regulating the relation between workmen and employees or between workmen and workmen or between employers and employees or for imposing restrictive conditions on the conduct of trade or business and includes any federation of two or more trade unions.

Reasons to join Trade Unions:

  • Dissatisfaction
  • Lack of power
  • Union instrumentality

Objectives of Trade Union:

  • Steady employment – employers may not be guarantee full time employment to everyone so trade union make sure that they keep on negotiating with a management for a regular employment for its members
  • Rationalizing personal policies – job security and incentives are not enough. Trade union also try to influence the various policy made by the organization related to promotion, transfer, retrenchment.
  • Voice indecision effecting workers – apart from job security, salary and wages, trade union try to make sure that any decision involving workers must be consulted with them before implementation. This may include – schedule of working, time for working, adopting of new technique etc.
  • Recognition and participation – getting recognition from the management is a tough task to do. However, one of the key objectives is to convince management that workers are not inferior but they are equally important for the organization

Function of Trade Union:

  • Collective bargaining between management and workers.
  • Advised the management on personal policies and practices
  • Taking up the individual and collective grievance within the organization
  • Welfare and recreational activities for the workers
  • Organizing, demonstration and strikes to put pressure on the management
  • Securing senatorial protection for the workers from the government

Types of Trade Unions:

  • Craft unions
  • General labour unions
  • Industrial unions
  • Federation of trade unions

Trade Union Movement in India:

  • All India Trade Union Congress (AITUC)
  • Trade Unions Act 1926
  • All India Trade Unions federation
  • Indian National Trade Union Congress (INTUC)
  • Hind Mazdoor Sabha (HMS)
  • United Trade Union Congress (UTUC)


The Industrial/labour legislations enacted by the British were primarily intended to protect the interests of the British employers. Considerations of British political economy was naturally predominant in shaping some of these early laws. Thus, in order to make Indian labour costlier the Factories Act was first introduced in 1883 as Indian textile goods offered a stiff competition to British textile in the export market and due to the pressure brought on the British Parliament by the textile magnates of Manchester and Lancashire. Thus, India received the first stipulation of 8 hours of work, the abolition of child labour, and the restriction of women in night employment, and the introduction of over time wages for work beyond 8 hours. While the impact of this measure was clearly welfarist the real motivation was undoubtedly protectionist.

The Trade Dispute Act, 1929 (Act 7 of 1929) was the earliest Indian statutes to regulate the relationship between employer and workmen. Provisions were made in these acts for restraining the rights of strike and lockout but no machinery was provided to take care of disputes.

As Independent India called for a clear partnership between labour and capital, the original colonial legislation underwent substantial modification in the post-colonial era. The content of this partnership was unanimously approved in a tripartite conference in December 1947 in which it was agreed that labour would be given a fare wage and fare working conditions and in return capital would receive the fullest co-operation of labour for uninterrupted production and higher productivity as part of the strategy for national economic development of and that all concern would observe a true period of 3 years free from strikes and lockouts. Ultimately, the Industrial Disputes Act (the Act) brought into force on 1st January, 1947 repealing the Trade Disputes Act, 1929 has since remained on statute book.

International Labour Organization (ILO):


  • ILO was founded in 1919 as a part of Treaty of Versailles.
  • Treaty of Versailles was signed on 28th June, 1919 exactly 5 years after the assassination of Ferdinand.
  • The ILO became the first specialized agency of the UN in 1946.
  • It is the only tripartite UN agency which brings together government, workers and employers
  • At present it has 187 member states.
  • Headquarter-Geneva and Switzerland

The ILO is currently the World’s foremost multilateral labour organization and since its inception it has been the part of the League of Nations in 1919 and later it became an organ of UNO. The ILO has a tripartite structure in which members governments, workers, and employers participate on an equal level. The ILO is composed of 3 main bodies: The International Labour Conference, the Governing Body and the International Labour Office.

The principal means of action in the ILO is the setting up of International Labour Standards in the form of conventions and recommendations. International standards are essential for the eradication of labour conditions involving, “injustice, hardship and privation “which is advocated by the ILO. International Labour standards refer to conventions agreed upon the International actors, resulting from a series of valuable judgments, set- forth to protect basic worker rights, enhance works’ job security, and improve their terms of employment on a global scale. The intent of such standards, then is to establish a worldwide minimum level of protection from in humane labour practices through the adoption and implementation of said measures. Thus, it is the aim of international labour standards to ensure the provision of rights in the workplace, such as against workplace aggression, bullying, discrimination and gender inequality on the one hand and on the other working diversity, workplace democracy and empowerment. According to the ILO, international labour standards contribute to the possibility of lasting peace, help to mitigate potentially adverse effects of international market competition and help the progress of international development.

Composition of ILO:

  • International Labour Conference:
  • International Labour conference is also known as the “Parliament of Labour”.
  • The International Labour Conference is organized every year in June by the ILO
  • The conference also makes decisions about the ILO’s general policy, work program and budget.
  • Each member state has four representatives at the conference: to government delegates, an employer delegate and a worker delegate.
  • Governing Body:
  • Executive body
  • Meets 3 times a year in Geneva (March, June, October/ November)
  • Comprises 56 titular (i.e., 28 governments, 14 employers, and 14 workers representatives). Ten of the titular government seats are permanently held by States of chief industrial importance (Brazil, China, France, Germany, India, Italy, Japan, the Russian Federation, the United Kingdom and the United States of America.
  • Main functions:
  • Takes decisions on ILO policy
  • Decides the Agenda of the Conference
  • Elects the director-general
  • Appoints the Members of CEACR (Committee of Experts on the Application of Conventions and Recommendations)
  • Involvement of the governing bodies in the supervision of the application of ILS.
  • International Labour Office:
  • Organization’s permanent secretariat comprising:
  • The headquarters in Geneva
  • Regional offices
  • Country offices
  • International Training Centre of the ILO
  • Led by the Director-general
  • Main functions:
  • The technical work of the organization is to be undertaken. For example, research, technical advice and support.
  • Development and implementation of programs set by the governing body


The ILO’s governing body has identified 8 Conventions as fundamental (also termed core Conventions), covering subjects that are considered as fundamental principles and rights at work. These include-

  • The right to establish free and independent workers’ and employees’ organizations.
  • The right to collective bargaining
  • All forms of forced and compulsory labour to be eliminated
  • The effective abolition of child labour
  • Equal pay for work of equal value for both men and women
  • The elimination of discrimination in respect of employment and occupation.

These principals and rights are also covered in the ILO, Declaration on Fundamental Principals and Rights at Work of 1998. They are viewed as enabling standards. Respecting them is viewed as a precondition for the application of all remaining ILO norms.

Fundamental of ILO Conventions:

  • Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87)
  • Right to Organize and Collective Bargaining Convention, 1949 (No. 98)
  • Forced Labour Convention, 1930 (No.29)
  • Abolition of Forced Labour Convention, 1957 (No. 105)
  • Minimum Age Convention, 1973 (No. 138)
  • Worst Forms of Child Labour Convention, 1999 (No. 182)
  • Equal Remuneration Convention, 1951 (No. 100)
  • Discrimination (Employment and Occupation) Convention, 1958 (No.111)

The Domestic Workers Convention No. 189 of 2011:

The Convention stipulates minimum wages; written work contracts; minimum rest periods; regulation of working time and holidays; social security and Maternity protection. It can be said as the most democratic multinational organization in the family of United Nations.

In 2012, a Trade Unionist was elected for the first time as director-general of the International Labour Office. Guy Ryder, a citizen of the United Kingdom, was previously the General Secretary of the International Trade Union Federation (ITUC).

Reports and Journals of ILO:

At present, periodicals flagship reports of the ILO include –

  • Global Wage Report
  • The World of Work Report and
  • The World Social Security Report

ILO’s periodicals publications are the quarterly journal “International Labour Review”.

World Trade Organization:


  • The establishment of IMF (International Monetary Fund) and World Bank was recommended by the International Conference, and also recommended the establishment of ITO (International Trade organization) but didn’t materialize, but in the year 1948 GATT was established.
  • GATT was signed by 23 nations in Geneva on October 30, 1947, and took effect on January 1, 1948.
  • It remained in effect until the signature by 123 nations in Marrakesh on April 14, 1994, which established the World Trade Organization (WTO) on January 1, 1995.
  • GATT was a legal agreement between many countries, who’s over all purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas, substantial reduction of tariffs, mutually advantages basis.
  • The World Trade Organization (WTO) is an transnational organization that regulates multination trade. The WTO officially commenced on 1st January 1995 under the Marrakesh Agreement, signed by 123 nations on 15th April, 1994, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948.

Originally however, the WTO was supposed to have a strong working relationship with the ILO and “consult and co-operate” in all labour related matters, and co-operate in such issues as reconstruction and economic development (Final Act of the United Nations Conference on Trade and Employment). The current system is but a shadow of this, with very limited collaboration. When the issue of labour standards was raised at the 1996 Singapore Ministerial Conference, Article 4 of the resultant Ministerial Declaration ruled that “the WTO and ILO Secretariats will continue their existing collaboration”. The Chairman of the Singapore Ministerial Conference Yeo Chow Tong later clarified in his concluding remarks that this collaboration “respects fully the respective and separate mandates of the two organization”. During the Geneva Ministerial Conference, the US, the EU and South Africa pushed again for a more substantive relationship between the two organizations which was opposed by a group of developing countries, laid by Brazil. But despite the amount of controversy and discussion about the issue, the Ministerial Declaration failed to make a mention of it.

Organizational Structure and mechanism:


  • Ministerial Conference:
  1. Supreme body
  2. Take ultimate decision
  3. Meets at least once (every 2 yrs.)
  • General council:

Acts on behalf of ministerial conference.

  • Function Council under the General Council:
  1. Council for trade in goods
  2. Trade in service
  3. In intellectual property rights.
  • Committees and management bodies:
  1. Trade and development
  2. Balance of Payment (BOP)
  3. Budget


  • Decision making process:
  • In Theory:
  • Voting proceeding
  • One country, one vote
  • Decision by simple majority
  • In Practice:
  • GATT style consensus method
  • Principle supplier
  • Green room meetings.
  • Critical Analysis:
  • Informal Decision-Making process hurt the interests of developing countries
  • There is lack of Transparency in the whole process.
  • Many a time developing counties are not consulted in the consensus building process.
  • Developing counties are also not invited in many of the green room meetings
  • Dispute Settlement mechanism
  • Consultation (60 days)
  • Establishment of panel (45 days)
  • Panel examination and final panel report to parties (6 months)
  • Panel report submitted to dispute settlement body [(DSB) 6 months]
  • Appeal report (60 to 90 days)
  • DSB adopts report (60 days)
  • Implementation of recommendation
  • Non-implementation of recommendation
  • Retaliation

Principles of WTO:

  • Non-discrimination
  • Most favored nation – all nation should be treated equally
  • National Treatment – all products are treated in a similar manner
  • Reciprocity – lowering import duties and other barriers.
  • Predictability through binding and enforceable commitments – maintains stable and predictable
  • Transparency – publish regulations and notify changes in trade policy
  • Encouraging development and economic reforms – all efforts are to contribute development.

Major WTO functions:

  • Administering WTO trade agreements.
  • Forum for trade negotiations
  • Handling trade disputes
  • Monitoring national trade policies
  • Technical assistance and training for developing countries
  • Co-operation with other international organization.

Goals and objectives:

  • The ultimate goal is to improve the welfare of the people of the member countries.
  • The WTO’s paramount objective is to be held trade flow smoothly, freely, fairly and predictably.
  • It does this by;
  • Administering trade agreements
  • Acting as a forum for trade negotiations
  • Setting trade disputes
  • Reviewing national trade policies
  • Assisting developing countries in trade policy issues, through technical assistance and training programs
  • Cooperating with other international organizations.

 Labour Reforms:

  • Governments across the world conduct labour reforms to strike a balance between interests of workers and employers.
  • Right balance would increase production, productivity and employment opportunities.
  • If India wants to allow “make in India” and “assembly in India”, to be successful, it needs to liberalize its labour sector, so that more and more foreign investors are incentivized to set up their production units in India

Problems in Indian Labour Market;

  • Labour market in India can be divided into two parts;
  • Formal sector
  • Informal sector
  • Formal sector is stringently regulated, while the informal sector is virtually free from any outside control and regulation with little or no job security.
  • Wages are too high in the formal sector, while they are too low in the informal sector.
  • The persuades, the investors to invest more in capital intensive sector, rather than investing in labour intensive sectors, despite the fact that India is labour surplus country.
  • It has incentivized “contractualisation” of labour, through which employers can escape stringent labour regulations.
  • Multiplicity of laws is a big problem in India. This leads to legal confusion can poor implementation of labour laws
  • As labour law is a concurrent subject, there were more than 40 central laws and about 100 state laws that regulate labour market.
  • Indian labour laws are quite rigid and there is little flexibility given to the employers.
  • Poor implementation of Social security protections given to workers under various laws.

Due to these policies, India has an inefficient and unproductive industrial sector. Labour productivity is also quite low, due to which industrial wages in India are down, there are fewer jobs and rising unemployment.


Theories of trade union:

  • Webb’s Theory of Industrial Democracy or Non-Revolutionary Theory:
  • Given by Sydney and Beatrice Webb
  • Books; The History of Trade Unionism (1894) and Industrial Democracy (1897), known as Bilbe of Trade Unionism.
  • Continuous association of wage earner, to deliberate regulation of working conditions
  • Trade union is class struggle
  • An idea of reconstruction of society by eliminating it from capitalist, profit maker
  • Use methods of mutual insurance, collective bargaining and legal enactment.
  • Criticism; no attention to emergency of labour organization does not specify the condition providing stimulus to the development of TU and determine the pattern.
  • The Marxian Theory Karl Marx Revolutionary Theory:
  • Given by Karl Marx and Hegles
  • Books; The poverty of Philosophy (1847) and The Communist Manifesto (1848)
  • Known as Anti-capitalist Approach
  • Emergency and growth of trade unionism has a result of inherent conflict between capitalist; Bourgeoisie and labourers; Proletariat
  • Tarde union is instrument to overthrow capitalist
  • Strikes, bandhs, gheraos, violence.
  • Evolutionary and fundamental changes
  • Criticism: Relation between labour and capital does not always contain conflict. Different categories of worker with varying skills and levels of employment occur.
  • Perlman’s Job Conciseness Theory or “Scarcity Consciousness” of Manual Worker:
  • Given by Perlman, also called as SCT theory
  • Based on his examination of labour movement in the US, Great Britain, Germany and Russia
  • Rejected the idea of class consciousness and substituted with job consciousness
  • Trade union is the out look of the pessimistic out look of a manualist worker (outlook occur when worker become conscious of scarcity of job)
  • Job scarcity unite worker together to protect limited jobs
  • 3 factors of labour movement;
  • Resistance power of capitalist
  • Degree of radical change
  • Degree of maturity of trade union
  • Genuine Trade unionists are “bread and butter” trade union
  • Hoxie’s Socio-psychological Theory
  • Given by Robert F. Hoxie
  • Book: Trade Unionism in the US (1920)
  • Presented socio-psychological approach.
  • Trade Union grow out of “Socio-psychological” environment of the workers.
  • Workers with similar economic, socio, not too divergent in temperament and training, tend to develop common interpretation and common solution to problem.
  • Adopted pluralistic approach to trade unionism
  • 4 types of Trade Union
  • Business union
  • Friendly or uplift
  • Revolutionary Union
  • Predatory Union
  • Later “dependent union: rely on support of employers” was added by followers
  • Tannenbaum’s Technological Theory (1921) or Man vs Machine
  • Given by: Frank Tannenbaum
  • Book: A Philosophy of Labour
  • Labour movement is the result and machine is the major cause
  • Machines, mode of production is reason for birth of trade union
  • Mechanization led to the breaking of the society (that gave security, justice, freedom and faith) and resulted in social atomization (workers look after themselves individually).
  • The sales of identity became inevitable and led to establishment of self-conscious group (belonging to same craft, job, shop, industry)
  • The trade union movement is an unconscious revellion against atomization od the industrial society.
  • Trade unionism is conservative and counter-revolutionary
  • Criticism: Hard to believe that trade union emerged with a view to revert back to pre-machine era.
  • Mahatma Gandhi’s Sarvoday Approach:
  • Books: Young India and Harijan
  • Based on idea of truth and non-violence
  • Importance of labour in the society and in production process. Labour is the source of wealth.
  • Trade union should aim to raise the moral and intellectual heights of labour
  • Voluntary conciliation between parties
  • Step of arbitration and lawful strike
  • Use machines that helps individual and add to efficiency of worker
  • Common Environment Theory:
  • Given by: John. R Common
  • Called as Sydney Webb of US, is pioneer on American Labour movement
  • Class Struggle Theory given by Common
  • Trade union is always a reaction and protest against capitalism
  • Collective bargaining is instrument of class struggle
  • Ultimately partnership between class struggle (employee and capitalist employer)
  • D.H Cole Theory:
  • Fabian socialist like way, presented theory similar to that of Webb’s
  • Book: World of Labour
  • Presented a class struggle theory, Trade Unionism, occur to carry class struggle.
  • Control over industries in revolutionary manner.
  • Only through class struggle one can escape from capitalism
  • Mitchell’s Economic Protection Theory:
  • Mitchell’s a labour leader rejected individual bargaining
  • Union afford economic protection
  • Simons Theory of Monopolistic:
  • Trade unionism is monopoly founded on violence
  • Monopoly power have no use to save abuse.

Methods of Trade Union:

These are the methods which a trade union adopts for getting its demands accepted,

  • Collective Bargaining: The ongoing process of negotiating between representatives of workers and employers to establish the conditions of employment. The collectively determined agreement may cover not only wages but hiring practices, layoffs, promotions, job functions, working conditions and hours, work discipline and termination and benefit programs.
  • Mutual insurance: under this method, trade unions establish a fund (by collecting money from their members). They also financially assist their members in emergency (accident, illness, or during strike)
  • Legal enactment: Trade unions demand for the honest implementation of various provisions of different acts and offer suggestion to government for their amendment. For this purpose, trade unions take political activities and get some of their nominees.

Trade Unions in Globalized Economy of India:

The new emerging economic environment revolves around the concepts of liberalization, privatization, globalization, flexibility and reorganization of work, along with stiff economic competitiveness and free interplay of market forces at national and international levels. This phenomenon saw increasing linkages between markets across countries and across regions, as result of which workers enterprises in the remote rural areas of the developing countries were affected. The linking of market is accompanied by new ways of production as enterprises moved to lean production, decentralized production and flexible methods of production. This requires managerial freedom to rationalize costs and optimized productivity of resources with no or minimum interference from other stake holders including governments and trade unions. This resulted in employment of new and advanced technology for improvement of output of guaranteed high quality to complete globally. Rapidly changing technology continually creates mew high quality products, so consumer choices and needs are perpetually changing as well; displaces new demands on businesses. Due to the freedom to innovate, so that these firms can rapidly introduced new technology and products to satisfy swiftly changing consumer choices, and demands, they adopted modern sophisticated technology, management and production practices involving the use of specially trained and educated work force in the production and marketing of goods and services. As a result of this numerous increases in international trade, flows during the emerging new economic environment.


It is beyond any doubt that economy has changed and changing first towards a ‘New Economy’. New and advanced technology accompanied by new forms of organization and reorganization has changed the scenario. Changing production system and changing consumer tastes and preferences put new demands on the business and people identify happiness with consumption. The working class, labour movements and trade unions suffered hard and was severely stressed in this emerged and emerging new economic scenario. As far as trade unions are concerned it has been argued in the capital and supporters of globalization circles, that they became redundant and irrelevant. In academic circles also it has been advocated to replace the trade unions with new forms of labour organization such as, NGOs, SHGs etc. One thing is evident and clear that market forces and these changes has weekend the labour movement and trade unions and eroded the power and influence that they have wielded even before. It is also clear that to replace the trade unions with new forms of labour organizations is a misplaced impression. Today new economic scenarios demands that trade unions must function with alliances and coalitions, at national, regional and global levels to achieve solidarity to mitigate the problems of the workers of the world.



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