When India became independent in 1947, the working class carried high hopes. A new government promised industrial growth, social justice, and dignity for labour. Yet the decades that followed told a more complicated story. The journey of working class movements after Independence moved through phases of optimism, militancy, political entanglement, and eventually decline in a liberalising economy. Understanding this evolution helps explain why trade unions today look very different from the powerful organisations that once shut down entire cities.
Table of Contents
- A hopeful but fragmented start
- The birth of party-linked unions
- The turbulent 1960s and 1970s
- Inflation and falling real wages
- The strike wave and the railway strike of 1974
- Political affiliation: strength and weakness
- The 1980s onwards: lockouts and industrial sickness
- The defeat of the Bombay textile strike
- The rise of lockouts
- Liberalisation and the changing world of work
- Retrenchment and the informal economy
- Jobless growth and the shrinking organised sector
- New forms of worker organisation
A hopeful but fragmented start
The years immediately after Independence were marked by both promise and division. The state took on the role of a major employer through public sector enterprises, and the Industrial Disputes Act of 1947 created formal machinery to resolve conflicts between employers and workers. For a time, disputes were largely managed through tribunals and dialogue rather than open confrontation. Rapid industrial expansion under the early Five Year Plans also absorbed labour, which initially kept tensions lower than they had been during the colonial period.
But the movement entered this new era already divided. The unified All India Trade Union Congress (AITUC) had splintered, and the political affiliations of various leaders pulled workers in different directions. This fragmentation would shape the entire post-Independence trajectory.
The birth of party-linked unions
The most defining feature of this period was the close link between trade unions and political parties. In 1947, the Indian National Trade Union Congress (INTUC) was formed as the labour wing of the Congress party, with the involvement of leaders like Sardar Vallabhbhai Patel and Gulzarilal Nanda. Soon, almost every major political force established its own labour organisation.
By 1949, four central trade union organisations were operating in the country, and over time the landscape included several large federations:
INTUC aligned with the Congress party. AITUC remained connected to the Communist Party of India. CITU (Centre of Indian Trade Unions) emerged as the wing of the Communist parties. BMS (Bharatiya Mazdoor Sangh) was linked to the Jana Sangh, which later became the BJP.
This political polarisation meant that the working class was organised along ideological lines rather than purely around workplace interests. One Springer academic study notes that the movement, which strengthened after Independence, was deeply shaped by these political currents from the very beginning. As one detailed history records, the working class movement was politicised along party lines, with each major union functioning as the arm of a political party.
The turbulent 1960s and 1970s
The relative calm of the early years did not last. From the mid-1960s onwards, the economic situation deteriorated sharply, and this directly fuelled labour unrest.
Inflation and falling real wages
Real wages and per capita income began to decline from the mid-1960s, and social unrest spread across both urban and rural areas. The situation worsened dramatically with the global economic downturn of the early 1970s. The 1971 war with Pakistan strained finances, and the 1973 oil shock pushed import costs higher. The share of crude oil and petroleum products in India’s import bill jumped sharply between 1972-73 and 1974-75.
The effect on workers was brutal. Over a two-year period leading to 1974, prices on average nearly doubled while wages were frozen or even cut. For workers with little savings, this was a direct attack on their ability to feed their families. The result was an explosion of industrial action.
The strike wave and the railway strike of 1974
This economic desperation produced one of the most militant phases in Indian labour history. Beginning with the strike wave of 1973, when there were more than 3,370 industrial disputes, the working class demonstrated extraordinary social power. The years between 1974 and 1984 are often considered the height of working class combativity in India.
The defining moment was the All India Railway Strike of May 1974, led by George Fernandes, which involved well over a million workers and brought the country’s rail network to a standstill. The state responded with mass arrests and force. The 1974 strike is widely seen as a turning point: afterwards, the government grew far more wary of militant labour, and unions learned hard lessons about the need for unity when confronting the state.
It is no accident that the popular Hindi cinema of this era was filled with the figure of the angry trade union leader battling corrupt mill owners. As the Lowy Institute observes, the political discourse of the 1960s and 1970s was dominated by fraught labour-business relations in a quasi-socialist economy, and these tensions found expression even in popular culture.
Political affiliation: strength and weakness
The connection between unions and political parties was a double-edged sword. On one hand, it gave workers a powerful platform and a voice in national politics. Strikes could become national events, and labour issues entered mainstream political debate.
On the other hand, this affiliation steadily eroded union autonomy. When a union’s parent party was in power, the union often softened its demands to avoid embarrassing the government. When the party was in opposition, strikes could be called for political reasons that had little to do with workers’ immediate needs. The multiplicity of rival unions in a single workplace also weakened bargaining power, since employers could play one union against another. As the Drishti analysis points out, this multiplicity kept the working class fragmented and vulnerable to various pressures.
The deeper problem was that the focus of unions sometimes shifted from genuine workers’ rights to serving political agendas. This dilution of purpose became more visible as the economic context changed in the 1980s.
The 1980s onwards: lockouts and industrial sickness
If the 1970s were defined by workers going on strike, the 1980s and beyond were increasingly defined by employers shutting their gates. The balance of power was shifting.
The defeat of the Bombay textile strike
The symbolic end of the militant era came with the Bombay textile strike of 1982. Led by Dr Datta Samant, the strike involved around 200,000 workers and dragged on for over a year. It ended in defeat and led to the closure of many mills. The trade union movement in Mumbai never fully recovered from this blow. The earlier textile strikes and mill closures in Kanpur during the 1970s and 1980s similarly forced many workers into precarious jobs like rickshaw pulling, as a Businessworld history documents.
The rise of lockouts
The very nature of industrial conflict was changing. Data shows that the balance shifted decisively from strikes (worker-initiated) toward lockouts (employer-initiated). According to one analysis, in 1970 strikes outnumbered lockouts nine to one and 1.5 million workers struck, but by 1990 the number of striking workers had fallen to around 804,000, barely more than half the 1970 figure. Person-days lost in disputes also dropped substantially over the same period.
This was a clear signal that workers were now more afraid of losing their jobs than willing to risk them in confrontation. Industrial sickness – where companies became financially unviable – turned into a widespread phenomenon, and lockouts and closures became common tools for managing or even avoiding labour costs.
Liberalisation and the changing world of work
The trends of the 1980s accelerated dramatically with the New Economic Policy of 1991. Facing a balance of payments crisis, India embraced liberalisation, privatisation, and globalisation. This fundamentally reshaped the terrain on which the working class operated.
Retrenchment and the informal economy
Since the New Industrial Policy of 1991, which freed domestic investors from most licensing requirements, the government accelerated the process of reducing public sector investment and closing loss-making public sector undertakings. As an INFLIBNET educational resource explains, instruments like the Voluntary Retirement Scheme and the Exit Policy were used to retrench the organised workforce and shut down sick industrial units in both the public and private sectors.
Liberalisation also fostered entirely new forms of industrial organisation: subcontracting, flexible specialisation, the growth of information technology, and an expansion of informal work relations. Crucially, this created a vast pool of unorganised labour, which made traditional unions structurally weaker. A peer-reviewed study in the journal Tempo Social argues that India’s ruling class, since 1991, deliberately attempted to fragment and weaken the trade union movement through a labour market reform agenda.
Jobless growth and the shrinking organised sector
Perhaps the biggest structural challenge was that economic growth did not produce enough secure jobs. Manufacturing, which could have absorbed millions of workers as it did in East Asia, grew disappointingly. Today, the overwhelming majority of the workforce remains in the informal sector, which lacks job security, benefits, and social protection. Because unions historically concentrated their strength in the organised sector, the shift toward informal and contract work cut directly into their membership and influence.
In response, many unions adapted by adopting a more collaborative, negotiation-based approach rather than relying on strikes. While this reduced open conflict, it also contributed to a decline in militancy and a perception that unions were becoming less effective at protecting workers.
New forms of worker organisation
The story does not end with decline. As traditional unions struggled, new kinds of organisations emerged to meet the needs of a transformed workforce. The Self-Employed Women’s Association (SEWA), founded in 1972, became a pioneering model for organising women in the informal sector. More recently, the rise of the gig economy has produced new bodies attempting to organise platform and delivery workers around issues of fair pay and job security.
These developments suggest that the working class movement has not disappeared but is reinventing itself for an economy where the factory floor is no longer the only battleground. The challenge is whether these scattered, informal workers can build the collective strength that the organised industrial workforce once held.
What do you think? Did the close link between trade unions and political parties ultimately strengthen the working class, or did it cost the movement its independence and bargaining power? And in an economy increasingly dominated by informal and gig work, what form should worker organisation take to remain relevant today?
References
- https://labourreview.org/history-of-strikes-in-india/
- https://www.iassite.com/trade-union-movement-in-india-upsc/
- https://corridalegal.com/the-historical-journey-of-indias-trade-union-movement/
- https://libcom.org/article/cycle-struggle-1973-1979-india
- https://isreview.org/issue/103/austerity-neoliberalism-and-indian-working-class-0/index.html
- https://www.lowyinstitute.org/the-interpreter/managing-india-s-labour-troubles
- https://www.drishtiias.com/to-the-points/paper1/movement-of-the-working-class
- https://jacobin.com/2016/10/indian-workers-general-strike/
- https://ebooks.inflibnet.ac.in/soc14/chapter/working-class-movements-in-india/
- https://www.scielo.br/j/ts/a/rGDRWvzXB3WH584xDnLR9Mt/?lang=en
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