In 1918, B.P. Wadia founded the Madras Labour Union, India's first trade union.
The Trade Union Act of 1926 granted Indian workers legal recognition and rights.
In 2020, the Industrial Relations Code was passed, consolidating existing labour laws.
The new code requires unions to demonstrate 51% support among workers for recognition.
Platform workers are not mentioned in the Industrial Relations Code 2020.
In March 2024, unions forced Zomato to reverse a discriminatory policy.
The Fairwork India Report 2024 found that no major platforms in India recognized trade unions.
Detailed Insights:
The 1926 Trade Union Act emerged after sustained pressure from the labour movement and nationalist leaders, aiming to protect unions from civil suits and criminal laws.
The Industrial Relations Code 2020, which came into force on November 21, 2025, preserves the immunity provisions of the 1926 Act but introduces stricter conditions for union recognition.
The requirement for a negotiating union to demonstrate 51% support is challenging in industries with high turnover and casual labor, hindering worker protection.
The code mandates a 60-day notice period before a strike, making sustained action difficult and allowing employers to prolong procedural suspensions.
The absence of any mention of gig and platform workers in the Industrial Relations Code 2020 leaves a significant portion of the workforce without legal protection.
Despite these challenges, workers continue to organize, as seen in the actions of unions like the Telangana Gig and Platform Workers Union.
Some states have passed social security laws for platform workers, but these may undermine the need for collective bargaining.
Key Concepts Involved:
Trade Union: An organization of workers formed to protect their rights and interests.
Collective Bargaining: Negotiation between employers and employees to determine terms of employment.
Labour Flexibility: The degree to which employers can adjust their workforce size and labor costs.