Shri Dattopant Bapurao Thengadi (b 1920, Arvi Disft

❖ Wardha, d 2004, Pune) is re co g n ise d by scholars as

^ philosopher and visionary. He authored more than
hundred books and numerous articles.

+ For 12 years he was a member of the Rajya Sabha.

^ For the last 7 decades he continued to work untiringly in

^ the s e rv ic e o f the nation. His source of inspiration was
^ Rashtriya Swayamsevak Sangh.

^ The labour organisation founded by him viz Bharatiya

jfyr Mazdoor Sangh, is the foremost labour union in the
country. He founded the Swadeshi Jagaran Manch,
Bharatiya Kisan Sangh and many other such organisations
^ aiming at arousing national feelings among the masses.
A Tribute to the Legend Page 1

LIFE PROFILE OF SHRADDHEYA DATTOPANT3I THENGADI

(10-11-1920 to 14-10-2004)
Name DATTOPANT BAPURAO THENGADI

Pracharak, Rashtiriya Swayamsewak Sanqh Since 1942

Father's Name I Sh. Bapurao Dajiba Thengadi

Education MA, LLB Maurice Colleqe and Law Colleqe, Naqpur

Date of Birth 10th November, 1920

Place of Birth Arvi, District Wardha (Maharashtra)

Languages known Hindi, Bangali, Sanskrit, Malayalam, English, Gujarathi, and

Mother Tonque Marathi

Early days
1. President - Vanar Sena of Arvi Taluka Congress Committee (1935)
2. President - Student Association Municipal High School Arvi 1935-36
3. Secretary - Poor Boys' Fund Committee, Municipal High Scool, Arvi 1936-36
4. Organiser - Arvi Govari Zuggi Zopadi Mandal - 1936
5. Probationer in the Hindustan Socialist Republican Army at Nagpur -1936 -38
Founder
A. Bharatiya Mazdor Sangh (BMS)
B. Bharatiya Kisan Sangh (BKS)
C. Samajik Samarasata Manch
D. Sarvapanth Samadar Manch
E. Swadeshi Jagaran Manch
Foun d er M em b e r
A. Akhii Bharatiya Vidyarthi Parishad (ABVP)
B. Sahakar Bharati
C. Akhii Bhratiya Adhivakta Parishad
D. Bharatiya Vichar Kendra
E. Akhii Bharatiya Grahak Panchayat (ABGP)
Patron
1. All India Retired Railway Mens' Federation
2. = All India Federation of Pensioners' Association
3. All India Railway Telegraph Staff Council
4. Loco-Mechanical Artisans Staff Association Eastern Railway
5. All India Railway Stenographers' Association
6. All India Railway Drawing Staff Association
7. Tamil Nadu Provident Fund Employees' Association
8. Welfare Society Fateh Nagar, New Delhi
9. Uttar Pradeshiya Vishvakarma Vikas Parishad
10. Bharatiya Karigar Suchana Kendra, Vidharbha
A Tribute to the Legend______________________________________________________ Page 2
11. Andhrapradesh Cheneta Parishram (Weavers ) Forum 1965)
12. Uttar Pradesh Samaj Delhi
13. Bharatiya Kaithari Nasavu Thozhailar Union (TN)
14. Bharatiya Shikshana Mandal
15. Shilpakar Kalyan Sangh Chunar (UP)
16. Vishwakarma Samaj Sabha Delhi
17. All India Central School Non-Teaching Staff Association (1973)
Associate M em ber o f
1. Indian Academy of Labour Arbitrators
2. Vishwa Karma Pratinidhi Sabha Punjab
3. Bhartiya Adim Jati Sevak Sangh
4. Scheduled Castes Federation (Former MP Unit 1953-55)
5. Pind Sudhar Sabha (Punjab) of Sant Harichand Singh Longowal
O rganisations Associated
(a) Labour
1. Organising Secretary of INTUC (MP State 1950-51)
2. President of Central Labour Organisation Committee
3. Organiser National Labour Movement
4. Formation of National Campaign Committee of Trade Unions etc.
(b) Political
1 Organising Secretary Bhartiya Jan Sangh, Madhya Pradesh 1951-53
2 Secretary Lok Sangharsh Samiti Dec. 1975 to March 1977
3 Member of Rajya Sabha 1964 to 1976
4 Member, Rajya Sabha Upadhyaksha Mandal 1968 to 1970
5 Member, Parliamentary Consultative Committee on Public Under Taking
(c) Others
1 President, Bhasha Prachar Samiti, Kerala
2 Vice President, Shree MA Birth Centenary (Pondicherry)
3 President, Kerala Rashtra Bhasha Prachar Conference, Kozhikode Aug 1942
4 Vice President, Akhil Bhartiya Vimukta Jati Sevak Sangh
5 Member o f :
i. Bhartiya Bauddha Mahasabha
ii. Bhartiya Shikshan Mandal,
iii. Vanvasi Kalyan Parishad
iv. Bhartiya Sahitya Parishad
v. Karmveer Haridasji Awac Smarak Samiti,
vi. Prajna Bhrati,
vii. Vigyan Bharati,
viii. Dr Hedgewar Janam Shatabdi Samaroh Samiti,
ix. Swasthya Bharti,
x. Hokar Vigyan Kalavidyala(Indore)
xi. Rambhau Mhalgi Prabhodhini (Mumbai)
xii. Bharatiya Kushta Nivaran Sevak Sangh
xiii. Vikas Bharati (Bishan Puri)
xiv. Maharshi Vedavyas Pratishthan,
xv. Bharatiya Ghumantu Jan Sewak Sangh
xvi. Dr. Baba Saheb Ambedkar Shatabdi Samaroh Samiti
xvii. The Battles of Panipat Memorial Society Samalochan
A Tribute to the Legend_________________ Page 3
Abroad (On invitation / Organisational)
1. African Countries
Egypt Kenya Uqanda
Tanzania Mauritius South Africa,
2. European:
Soviet Union Hunqary Yugoslavia
France Italy Enqland
Switzerland Germany Holland
Belgium Luxemburg
3. North America:
Canada United States of America Mexico
4. Asia
China Brahma(Myanmar) Thailand
Indonesia Malaysia Singapore
East Pakistan (Bangladesh) Nepal Israel
Books Authored
Hindi
a) Ekatma Manav Darshan b) Vichar Sootra
c) Communism - Apani Hi Kasauti Par d) Purani Neev Naya Nirman
e) Prachar Tantra f) Computerisation
q) Paschimikaran Ke Bina Adhunikikaran h) Hamari Visheshtayen
i) Rashtriya Punarnirmanka Adhaar l) Dr.Babasaheb Ambedkar
k) Dhyeya Path Par Kisan 1) Sapta Karm
m) Lakshya Aur Karya n) Sanket Rekha
o) Apni Rashtriyata p) Dalit Samasya Par Ek Vichar
q) Shiksha Mein Bharatiyata r) Dr. Babasaheb Ambedkar - Ek Prerak
Vyaktimatva
s) Bharatiya Kisan t) Jagrit Kisan
u) Prastavana v) Hamara Adhishthan
w) Loktantra x) Chirantan Rashtra Jeewan
y) Shramik Kshetra Ke Upekshit Pehlu z) Rashtriya Shrama Diwas
aa) Rashtriya Purush Chhatrapati Shivaji
English
1. Nationalisation or Governmentalisation 2. Focus on Socio Economic Problems
3. Perspective 4. The Great Sentinel
5. His Legacy Our Mission 6. Computerisation
7. Modernisation Without Westernisation 8. Why Bharatiya Mazdoor Sanqh
9. Consumer: A Sovereign Without 10. Spectrum
Sovereignty
11. Third Way 12. Our National Renaissance
Marathi
1. Chintan Patheya 2. Vaktrutvachi Poorva Tayari 3. Airaniche Ghav
A Tribute to the Legend ______ Page 4
Foreword of Important Books
1. Kaipa Vriksha 2. Rashtra
3. Indian's Planned Poverty 4. Bade Bhaiya Smruti Granth
5. Pandit Deen Dayal Upadhyay Vichar Darshan 6. Hindu Economics
7. Swadeshi Views of Globalisation 8. Raiakiya Netrutva
9. Shrama Samanvayacha Vichar 10. Teiachi Aarti
Papers to read
1. The Third Way in World Hindu Conference, Durban (South Africa)
2. Globalisation - Economic System - A Hindu View in Word Vision 2000 Global Conference in Washington
DC
3. Hindi - Ek Upekshit Hindu Granth - Jhenda Avesta (Parsi)
4. Aplya Samajache Bhavitavya in Dr. Baba Saheb Ambedkar Smriti Vyakhyan Mala Speech at
Marathwada Vidyapeeth Aurangabad
5. Speech in Akhil Bharatiya Vigyan Congress Seminar at Vikarm Vidyapeeth Ujjain
6. Speech in Shatabdi Samaroh Hoikar Vishva Vidyalaya Indore
7. Speech on Co-operative Movement in India at Mananiya Lakshma’nrao Inamdar Memorial Lecture in
Co-operation at University of Bombay
Im portant C on tribu tio ns
1 National Labour Policy
2 National Charter of Demands of Indian Labour
3 Launched Shri Ram Shiia Pujan From Badrinath, Kedamath & Gangotri
4 Satyagrah for Sri Ram Kar Seva at Kanpur
5 Received Dr. Hedgewar Prajna Puraskar, Calcutta
6 Deen Dayal Memorial Hospital Pune
7 Mahamana Malaviya Jayanti
8 Message Broadcasted By Bejing (China) Radio on 28-04-1985

I t is a Herculian task to ever attem pt to capture this g a in t

philosopher, visionary, organiser, em inent thinker, economist, orator,
author w ithin the folds o f this sm all booklet.

Abiding b y the tenets o f Bharatiya M azdoor Sangh to shun persona!

glorification o f an y in d ivid u a l..... set b y S h ri D attopantji Thengdi
him self.... We attem pt to append the philosophy and achievem ents
o f Bharatiya M azdoor Sangh as nurtured b y this grea t personality
during his life tim e.

This we feel, w ould serve as a fu rth e r "Parichay" o f the noble

departed soul, personification o f nTyag, Tapasya, Balidan"
A Tribute to the Legend___________ Page 5
T r a d e U n io n s (b a ck g ro u n d ^
INTRODUCTION

What sets apart an organisation as a dynamic, vibrant, outstanding and well-knit force is reflected in how it
blends its goals for growth with the myriad needs of its most precious asset - its members - its karyakartas-
that lends strength to its success ratings.

It is essentially a culture, one that shows care and concern for the well being of every member in its family - a
philosophy that prides itself in their welfare. And extends that ever-helpful hand not only in their hours of
crisis, but even in carving out a progressive future and consolidating a life-style - in a very special way.

BMS is among such organisations that conscientiously care, and it shows. Every member in the BMS family
has a deep sense of belonging and a pride unmatched, mainly because BMS reaches out to him or her
humanely.

Little wonder, BMS romped home with a clear majority during the membership verification in 1989 conducted
by the Government of India. Without the least opportunity to look back since then it is rising steadily and till
now is undisputedly the NUMERO UNO in the country with the confidence of around 83 Lakhs (8.3 Millions)
workers in the country.
• The Role of Trade Unions
Trade unions are unique organisations whose role is variously interpreted and understood by different interest
groups in the society. Traditionally trade unions role has been to protect jobs and real earnings, secure better
conditions of work and life and fight against exploitation and arbitrariness to ensure fairness and equity in
employment contexts. In the wake of a long history of union movement and accumulated benefits under
collective agreements, a plethora of legislations and industrial jurisprudence, growing literacy and awareness
among the employees and the spread of a variety of social institutions including consumer and public interest
groups the protective role must have undergone, a qualitative change. It can be said that the protective role
of trade unions remains in form, but varies in substance.

There is a considerable debate on the purposes and role of trade unions. The predominant view, however, is
that the concerns of trade unions extend beyond 'bread and butter’ issues. Trade unions through industrial
action (such as protests and strikes) and political action (influencing Government policy) establish minimum
economic and legal conditions and restrain abuse of labour wherever the labour is organised. Trade unions are
also seen as moral institutions, which will uplift the weak and downtrodden and render them the place, the
dignity and justice they deserve.
• The State of Trade Unions in the World.
Public opinion is hostile to trade unions in most countries. The public is not against unionism in principle. It is
against the way unions and union leaders function. The public image of union leaders is that they are
autocratic, corrupt and indifferent to the public interest T o o much power, too little morality' sums up the
publics' assessment of unions
There have been many opinion surveys especially in the United States, which bring out the poor public image
of trade unions. In surveys which rank the confidence of the American public in fourteen institutions (as for
example the army, church, supreme court, stock market, legal profession, industrialists, newspapers etc.)
trade unions have been consistently placed at the bottom of the list.
There is a serious decline in union membership in most industrialized nations. There are two possible ways of
looking at union membership figures. The first method is to simply add up all union members in a factory,
office or country. This gives overall membership position. In the second method, the density of membership is
calculated. Density is the percentage of union members in relation to total employment, for example, if unions
have 50 members in a factory employing 100, the density is 50 percent. When the reference is to entire
country, density is measured by comparing union members against total employment in all sectors. Density is
A Tribute to the Legend_____________________________________________________________ Page 6
generally accepted as a better indicator because it shows not only how many are members but also how many
are not.
Membership has dropped sharply in many European countries. In France, which is the worst hit, the density of
union membership is now estimated to be a miserable 10 percent. In Holland, which is also badly affected,
density is estimated at around 25 percent. In England the density of union membership is 44 percent. The
picture is not very different outside Europe. In the United States, density has dropped to 16 percent. In Japan,
it has dropped to 25 percent. In India, union density has been of a very low order i.e., 10 percent. There are,
however, some exceptions to this depressing trend. Trade union density in Sweden, the highest in the world,
stands at an extremely impressive 91 percent the working population. Trade unions in Sweden are most
respected. They seek social, political and economic democracy. They participate at all levels of decision­
making, national and local, and share in the administration of laws. The density in Denmark is 82 percent, and
in Norway 63 percent, both very high by world standards.
• Trade Unions in India
The trade union movement in India is over a century old. It is useful to take stock to see whether the trade
unions in India are at the centre stage or in periphery. In order to do that, one may peruse the following
relevant, though selective, statistics.
The Indian workforce 31.479 Crore (314.79 million) constitutes 37.3 percent of the total population. Of the
total workforce, 91.5 percent is accounted for by the informal sector, while the formal sector accounts for 8.5
percent. Further, only abut 3 Crore (30 million) (i.e. 9.5 percent o f the workforce) are employed on permanent
basis, implying 90.5 percent being employed on casual basis. It has also been reported that by December
1991, the claimed membership of the Indian trade union movement was 3.05 Crore (30.5 million) (i.e. 9.68
percent of the workforce) with 82.24 percent of the trade union membership being accounted for by the
organised sector. Thus the unorganised sector is meagrely represented.
The World Labour Report summarises the trade union situation in India "Indian unions are too very
fragmented. In many work places several trade unions compete for the loyalty of the same body of workers
and their rivalry is usually bitter and sometimes violent. It is difficult to say how many trade unions operate at
the national level since many are not affiliated to any all- India federation. The early splits in Indian trade
unionism tended to be on ideological grounds each linked to a particular political party. Much of the recent
fragmentation, however, has centered on personalities and occasionally on caste or regional considerations."
Apart from the low membership coverage and fragmentation of the trade unions, several studies point to a
decline in membership, growing alienation between trade unions and membership particularly due to changing
characteristics of the new workforce and waning influence of national federations over the enterprise unions.
New pattern of unionisation points to a shift from organising workers in a region or industry to the emergence
of independent unions at the enterprise level whose obsession is with enterprise level concerns with no forum
to link them with national federations that could secure for them a voice at national policy making levels.
Several studies also point to a shift in employment from the organised to the unorganised sector through
subcontracting and emergence of a typical employment practice where those work for the organisation do not
have employment relationship, but a contractual relationship.
Unfortunately trade unionism in India suffers from a variety of problems such as politicisation of the unions,
multiplicity of unions, inter-union rivalry, uneconomic size, financial debility and dependence on outside
leadership.
• Bharatiya Mazdoor Sangh

The Bharatiya Mazdoor Sangh (BMS) is the largest Central Trade Union Organisation. The learned economist
arid visionary, Mananiya Dattopantji Thengdi who has dedicated his life to the service of the society, along
with some like minded nationalists, founded it on auspicious Lokmanya Tilak Jayanti 23 July 1955.
A Tribute to the Legend_________________________________________________________ Page 7
Starting from zero in 1955, BMS is now a well-knit organisation in all the states and in private and public
sector undertakings. Several organisations of the State and Central government employees are also affiliated
to the BMS. The Sangh also enjoys the premier position in several industries.

At present it has over 5,000 affiliated unions with a membership of more than 65 lakhs (6.5 million). Although
not affiliated to any International Trade Union Confederation, BMS has relations with Central Labour
Organisations of other countries. BMS representatives are taking part in the ILO sessions at Geneva for the
past 25 years.
• Objectives

Bharatiya Culture forms the ideological basis of Bharatiya Mazdoor Sangh. Approach of culture is essentially
subjective. The character of its contribution to the peace, progress and prosperity of humanity is, therefore,
basic and fundamental. It fulfils its mission through various individuals and institutions arising in different
times and climes. BMS is one of the instruments of Culture fighting against the mutually hostile but
equally anti-human Capitalism and Marxism, with the ultimate goal of establishing Bharatiya Social Order
based upon the tenets of Ekatma Manavavad (Integral Humanism).

It would be wrong to presume that labour problems are related to one section of population only. Such an
exclusive view would be very unrealistic. Deterioration of working and living conditions of labour cannot be a
sectional problem of labour alone; it is a malady adversely affecting the health of the entire social organism.
Labour has always been regarded as the very foundation of the Bharatiya social structure. It is an integral and
vital part of society. The character of its problems, therefore, is not sectional but national. To protect and
promote its interests-which are by the very nature of things, not only compatible but invariably identical with
those of the nation as a whole-is, therefore, the natural responsibility of the entire nation. BMS is pledged to
fulfil this fundamental national duty towards labour.
With a view to achieving national prosperity and eradicating poverty, BMS is pledged to ’Maximum Production
and Equitable Distribution’. This spirit is reflected in the ancient Bharatiya idea: Shata Hasta Samahar, Sahsra
Hasta Sankir' (with a hundred hands produce; with a thousand hands, distribute.) Prosperity is not possible
without increased Production. But we must also ensure equitable distribution so that all people have the urge
to produce and share the fruits of prosperity.

BMS declared its belief in the concept of God as the sole moral proprietor of all wealth.
GROWTH OF TRADE UNIQN MOVEMENT IN INDIA
• The First Strike
The origin of the movement can be traced to sporadic labour unrest dating back to 1877 when the workers at
the Empress mills at Nagpur struck following a wage cut. In 1884, 5000 Bombay Textile Workers submitted a
petition demanding regular payment of wages, a weekly holiday, and a mid-day recess of thirty minutes. It is
estimated that there were 25 strikes between 1882 and 1890. These strikes were poorly organised and short
lived and inevitably ended in failure. The oppression by employers was so severe that workers preferred to
quit their jobs rather than go on strike. Ironically, it was to promote the interests of British industry that the
conditions of workers were improved. Concerned about low labour costs, which gave an unfair advantage to
Indian factory made goods, the Lancashire and Manchester Chambers of Commerce agitated for an inquiry
into the conditions of Indian Workers.
• The F irst Fa cto rie s A ct
In 1875, the first committee appointed to inquire into the conditions of factory work favoured legal restriction
in the form of factory laws. The first Factories Act was adopted in 1881. The Factory Commission was
appointed in 1885. The researcher takes only one instance, the statement of a witness to the same
commission on the ginning and processing factories of Khandesh: "The same set of hands, jmen and women,
worked continuously day and night for eight consecutive days. Those who went away for the night returned at
three in the morning to make sure of being in time when the doors opened at 4 a.m., and for 18 hours' work,
A Tribute to the Legend__________________________________________________________________ Page 8
from 4 a.m. to 10 p.m., three or four annas was the wage. When the hands are absolutely tired out new
hands are entertained. Those working these excessive hours frequently died." There was another Factories Act
in 1891, and a Royal Commission on Labour was appointed in 1892. Restrictions on hours of work and on the
employment of women were the chief gains of these investigations and legislation.
• The First Workers' Organisation in India
Quite a large amount of pioneering work was done with remarkable perseverance by some eminent individuals
notably by Narayan Lokhande who can be treated as the Father, of India’s Modern Trade Union Movement.4
The Bombay Millhands' Association formed in 1890 under the leadership of Narayan Lokhande was the first
workers’ organisation in India. Essentially a welfare organisation to advance workers' interests, the Association
had no members, rules and regulations or funds. Soon a number of other organisations of a similar nature
came up, the chief among them being the Kamgar Hitvardhak Sabha and Social Service League.
Organisations, which may more properly be called trade unions, came into existence at the turn of the
century, notable among them being the Amalgamated Society of Railway Servants of India and Burma, Unions
of Printers in Calcutta. The first systematic attempt to form a trade union on permanent basis was done in
1906 in the Postal Offices at Bombay and Calcutta.5 By the early years of the 20th century, strikes had
become quite common in all major industries. Even at this time. There were visible links between nationalist
politics and labour movement. In 1908, mill workers in Bombay went on strike for a week to protest against
the conviction of the nationalist leader Bal Gangadhar Tilak on charges of sedition. There was also an outcry
against the indenture system by which labour was recruited for the plantations, leading to the abolition of the
system in 1922.
• Madras Labour Union
The Madras Labour Union was founded in 1918. Although it was primarily, an association of textile workers in
the European owned Buckingham and Carnatic Mills, it also included workers in many other trades. Thiru Vi.
Ka. and B. P. Wadia the nationalist leaders founded the Union. The monthly membership fee of the union was
one anna. The major grievances of workers at this time were the harsh treatment meted out to Indian labour
by the British supervisors, and the unduly short mid-day recess. The union managed to obtain an extension of
the recess from thirty |p forty minutes. It also opened a cheap grain shop and library for its members and
started some welfare activities.
There was a major confrontation between the union and the management over the demand for a wage
increase, which eventually led to a strike and lockout. The management filed a civil suit in the Madras High
Court claiming that Wadia pay damages for inciting workers to breach their contract. As there was no
legislation at this time to protect the trade union, the court ruled that the Madras Labour Union was an illegal
conspiracy to hurt trading interests. An injunction was granted restraining the activities of the union. The suit
was ultimately withdrawn as a result of a compromise whereby all victimised workers, with the exception of
thirteen strike leaders, were reinstated and Wadia and other outside leaders severed their link with the union.6
Against this background N.M. Joshi introduced a bill for the rights of a Trade Union. But the then member for
Industries, Commerce and Labour himself promised to bring legislation in the matter and the Trade Union Act
of 1926 was enacted.
By this time many active trade union leaders notably N. M. Joshi, Zabwalla, Solicitor Jinwalla, S. C. Joshi, V. G.
Dalvi and Dr. Baptista, came on the scene and strong unions were organised specially in Port Trust, Dock
staff, Bank employees (especially Imperial Bank and currency office), Customs, Income-Tax, Ministerial staff
etc.
• Textile Labour Association
About the same time as the Madras Labour Union was being organised, Anusuyaben Sarabhai had begun
doing social work among mill workers in Ahmedabad, an activity which was eventually to lead to the founding
of the famous Mazdoor Mahajan -Textile Labour Association, in 1920. Gandhi declared that the Textile Labour
Association, Ahmedabad, was his laboratory for experimenting with his ideas on industrial relations and a
model labour union. He was duly satisfied with the success of the experiment and advised other trade unions
to emulate it.7
A Tribute to the Legend______________________________________________________________ Page 9
There were a number of reasons for the spurt in unions in the twenties. Prices had soared following World
War I, and wages had not kept pace with inflation. The other major factor was the growth of the nationalist
Home Rule Movement following the war, which nurtured the labour movement as part of its nationalist effort.
At this time the workers had no conception of a trade union and needed the guidance of outside leaders. The
outsiders were of many kinds. Some were philanthropists and social workers (who were politicians). They saw
in labour a potential base for their political organisation. The politicians were of many persuasions including
socialists, Gandhians who emphasized social work and the voluntary settlement of disputes, and communists.
• Formation of AITUC
The year 1920 also marked the formation of the All India Trade Union Congress (AITUC). The main body of
labour legislation and paradoxically enough even the formation of the AITUC owes virtually to the activities of
the International Labour Organization (ILO). It was considered that the origin of the First World War was in
the disparities between the developed and undeveloped countries. As a result the treaty of Versailles
established two bodies to cure this ill viz., the League of Nations and the ILO. India was recognized as a
founder member of the latter. This is a tripartite body on which each member state nominates its
representatives. For the foundational conference of ILO held in 1919 the Government of India nominated N.
M. Joshi as the labour member in consultation with the Social Service League, which was then making the
greatest contribution for the cause of workers. The ILO has a very exercising machinery to see that various
Governments take some actions on its conventions and recommendations. All labour legislations in India owe
a debt to these conventions and recommendations of ILO. The formation of India's first Central Labour
Organisation was also wholly with a view to satisfy the credentials committee of ILO. It required that the
labour member nominated by Government be in consultation with the most representative organisation of
country's labour. The AITUC came into existence in 1920 with the principal reason to decide the labour
representative for ILO's first annual conference. Thus the real fillip to the Trade union movement in India both
in matters of legislation and formation of Central Labour Organisation came from an international body, viz.,
ILO and the Government's commitment to that body. Dependence on international political institution has thus
been a birth malady of Indian Trade Union Movement and unfortunately it is not yet free from these defects.
The AITUC claimed 64 affiliated unions with a membership o f 1,40,854 in 1920 Lala Lajpat Rai, the president
of the Indian National Congress became the first president of AITUC.
In 1924 there were 167 Trade unions with a quarter'million members in India. The Indian factories Act of
1922 enforced a ten-hour day.
• Trade Unions Act
The Indian Trade Unions Act 1926 made it legal for any sevqn workers to combine in a Trade Union. It also
removed the pursuit of legitimate trade union activity from the purview of civil and criminal proceedings. This
is still the basic law governing trade unions in the country.
• Ideological Dissension
Ideological dissension in the labour movement began within few years of the AITUC coming into being. There
were three distinct ideological groups in the trade union organisation: communists led by Shri M. N. Roy and
Sbri Shripad Amrut Dange, nationalists led by Shri Gandhiji and Pandit Nehru, and moderates led by Shri N. M.
Joshi and Shri V. V. Giri. There were serious differences between these three groups on such major issues as
affiliation to international bodies, the attitude to be adopted towards British rule and the nature of the
relationship between trade unions and the broader political movement. The communists wanted to affiliate the
AITUC to such leftist international organisations as the League against Imperialism and the Pan-Pacific Trade
Union Secretariat.
The moderates wanted affiliation with the BLO and the International Federation of Trade Unions based in
Amsterdam, The nationalists argued that affiliation with the latter organisations would amount 10 the
acceptance of perpetual dominion status for the country under British hegemony. Similarly, the three groups
saw the purpose of the labour movement from entirely different points of view. The party ideology was
supreme to the communists, who saw the unions only as instruments for furthering this ideology. For the
A Tribute to the Legend_____________________________ _____________________________________Page 10
nationalists, independence was the ultimate goal and they expected the trade unions to make this their
priority as well. The moderates, unlike the first two, were trade unionists at heart. They wanted to pursue
trade unionism in its own right and not subjugate it completely to broader political aims and interests.
• Formation of NTUF
From the mid-twenties of the present century onwards the communists launched a major offensive to capture
the AITUC. A part of their strategy was to start rival unions in opposition to those dominated by the
nationalists. By 1928 they had become powerful enough to sponsor their own candidate for election to the
office of the President of the AITUC in opposition to the nationalist candidate Nehru. Nehru managed to win
the election by a narrow margin. In the 1929 session of the AITUC chaired by Nehru the communists
mustered enough support to carry a resolution affiliating the federation to international communist forum.
This resolution sparked the first split in the labour movement. The moderates, who were deeply opposed to
the affiliation of the AITUC with the League against Imperialism and the Pan - Pacific Secretariat, walked out
of the federation and eventually formed the National Trade Union Federation (NTUF). Within two years of this
event the movement suffered a further split. On finding themselves a minority in the AITUC, the communists
walked out of it in 1931 to form the Red Trade Union Congress. The dissociation of the communists from the
AITUC was, however, short-lived. They returned to the AITUC the moment the British banned the Red Trade
Union Congress. The British were the most favourably disposed toward the moderate NTUF. N.M. Joshi, the
moderate leader, was appointed a member of the Royal Commission.
The splintering away of the NTUF had cost the AITUC thirty affiliated unions with close on a hundred thousand
members. However, the departure of the communists had not made much difference. In any case, the Red
Trade Union Congress quickly fell apart, and the communists returned to the AITUC. During the next few
years, there was reconciliation between the AITUC and NTUF as well. The realisation dawned that the split
had occurred on issues such as affiliation with international organisations, which were of no concern to the
ordinary worker. By 1940 the NTUF had dissolved itself completely and merged with the AITUC. It was agreed
that the AITUC would not affiliate itself with any international organisation, and further, that political questions
would be decided only on the basis of a two-thirds majority.
On the whole the thirties were a depressing period for Indian labour. There were widespread attempts to
introduce rationalisation schemes and to effect wage cuts. The wartime inflation also took its toll. While the
militant elements on the labour movement fought for the redressal of workers grievances, the movement itself
was steeped in political dissent. The popular governments voted to power in the 1937 elections did not
measure up to the workers’ expectations although prominent labour leaders such as Shri Nanda and Shri Giri
had taken over as labour ministers. They did pass some useful legislations, however a major piece of
legislation was the Bombay Industrial Disputes Act of 1938, which attempted to eliminate inter union rivalries
by introducing a system recognising the dominant union.
• Formation of Indian Federation of Labour
In 1939, when the British unilaterally involved India in World War II, there was another wave of schisms in
the labour movement. Congress governments voted to power in the 1937 elections resigned in protest against
the country's involvement in an alien war, and the nationalists in the AITUC were naturally opposed to the war
effort. But Roy and his supporters stood by the British. They founded a rival labour movement in 1941 called
the Indian Federation of Labour (IFL). Initially the communists opposed the war effort and British had in fact
jailed most of their leaders. But there was a dramatic volt face in their position in 1942 when Soviet Russia
joined the Allies.
In the same year the nationalists launched the Quit India movement under Gandhi\s leadership. The British
reacted to these developments by emptying the jails of communists and filling them up with nationalists. With
the nationalists in jail, the AITUC was ripe for capture by the communists, and they made the most of th ?
opportunity. By the end of the war there were four distinct groups of trade unionists, two in jail and two out o :
it Among the nationalists who were in jail there had existed/for some time a pressure group called the
congress socialists. The two groups outside jail were the Roy faction and communists who had in common
A Tribute to the Legend _____ __________________________________________________ Page 11
their support for the British war effort, but had maintained their separate identities. The stage was set for a
formal division of the labour movement, which would reflect the ideological differences.
At this juncture, the Government of India became quite active on the labour front and Dr. B. R. Ambedkar, the
then Labour Member of the Executive Council to Viceroy with the assistance of S.C. Joshi was engaged and
exercised to take action on all the recommendations of the Royal Commission on Labour. At their instance a
fact-finding committee was appointed to study the then existing situation. During the period 1945-47 most of
the present labour legislations were drafted and the conciliation and other machinery were also well
conceived. In 1947 when the National Government was formed Shri S. C. Joshi. The then Chief Labour
Commissioner, was entrusted with the work of implementing the various provisions of labour law. The whole
of the present set up owes a debt to the work that was done by him and Shri V. V. Giri, the former president
of India.
• Formation of INTUC, HMS and UTUC
With the formation of National Government Sardar Vallbhbhai Patel advocated very strongly the cause of
forming a new central organisation of labour. It was his view that the National Government must have the
support of organised labour and for this purpose the AITUC cannot be relied upon since it was thriving on
foreign support and used to change its colours according to the will of its foreign masters
So, on 3rd may 1947, the Indian National Trade Union Congress (INTUC) was formed. The number of unions
represented in the inaugural meet was around 200 with a total membership of over 5,75,000." There was now
no doubt that the AITUC was the labour organisation of the communists, and the INTUC the labour
organisation of the congress This was further confirmed when die congress socialists, who had stayed behind
in the AITUC, decided to walk out in 1948 and form the Hind Mazdoor Panchayat (HMP). The socialists hoped
to draw into their fold all non-congress and non-communist trade unionists. This hope was partly realised
when the Roy faction IFL merged with the HMP to form the Hind Mazdoor Sabha (HMS). However, the
inaugural session of the HMS witnessed yet another split in the labour movement. Revolutionary socialists and
other non-communist Marxist groups from West Bengal under the leadership of Shri Mrinal Kanti Bose alleged
that the HMS was dominated by socialists and decided to form the United Trade Union Congress (UTUC). The
UTUC is formally committed to the pursuit of a classless society and non-political unionism. In practice,
however, many of its members are supporters of the Revolutionary Socialist Party.
By the fifties the fragmentation of the labour movement on political lines had become a permanent fact.
Disunity was costing the labour movement dearly. There were periodic attempts at unity, but nothing much
came of them. The INTUC was firmly opposed to any alliance with the communists. The HMS was willing to
consider a broad-based unity that would include all groups, but not for any arrangement with the AITUC
alone. The major stumbling block to unity was the bitter experience to other groups had with the communists
in the thirties. Even in specific industries such as railways where a merger between rival groups did take place,
unity was short-lived All that could be achieved between rival trade unions were purely local ad-hoc
arrangements.
• Formation of BMS

Before the rise of Bharatiya Mazdoor Sangh the labour field was dominated by political unionism. The
recognised Central Labour Organisations were the wings of different political parties or groups. This often
made workers the pawns in the power-game of different parties. The conscientious workers were awaiting the
advent of a national cadre, based upon genuine trade unionism, i.e. an Organisation of the workers/ for the
workers, and by the workers. They were equally opposed to political unionism as well as sheer economism i.e.
"bread butter unionism". They were votaries of Rashtraneetee or Lokaneetee. They sought protection and
promotion of workers' interests within the framework of national interests, since they were convinced that
there was no incompatibility between the two. They considered society as the third-and more important-party
to all industrial relations, and the consumers' interest as the nearest economic equivalent to national interest.
Some of them met at Bhopal on 23 July 1955 (the Tilak Jayanh" Day) and announced the formation of a new
NATIONAL TRADE UNION CENTER, BHARATIYA MAZDOOR SANGH.
A Tribute to the Legend________________________________________________________ page 12
During the All India Conference at Dhanbad in 1994, BMS has given the clarion call to all its Karyakartas to be
prepared to face the THIRD WORLD WAR AND SECOND WAR OF ECONOMIC INDEPENDENCE unleashed by
the developed countries against the developing countries. The emissaries of the developed countries are the
multinational companies who look up to India as a ideal market to sell their outdated consumer products &
technologies with a view to siphon out the profits to their respective countries. In fact there is concerted effort
to even change the tastes and outlook of the average Indian through satellite and junk food channels to suit
them. One might recall that the Indians were addicted to tea and coffee by the then British rulers by
distributing them free of cost during 1940s. Today not surprisingly India is the largest consumers of both the
beverages. Now in this decade the soft drinks and potato chips rule the roost. BMS has made it adequately
clear that every country that has to develop has to adopt and adapt methods, which suits it, both culturally
and economically. Today India needs MODERNISATION AND NOT BLIND WESTERNISATION. BMS publications
HINDU ECONOMICS by Shri M. G. Bokare and THIRD WAY by Mananeeya Dattopant Thengdi are eye-openers
to the planners of the nation in this direction. Practising SWADESHI is the only remedy to counter this
onslaught.

In 1996, in its 41st year, BMS has rededicated itself in organising the unorganised labour in the country
(around 95% in a total of 3500 lakh, (350 million), labour force in the country) with a view to raise their
standard of living and protect them against exploitation. Every member of the BMS has donated minimum
Rs.100 in the 40th year towards the cause.

BMS therefore encourages its workers to undertake social and constructive work along with day-to-day union
work. During the Pakistan war, BMS unions suspended their demands and engaged themselves in repairing
runways and donating blood for army men.
• Aims and Objects of BMS

Those who attended the convention of 23 July 1955, the formation day, had full confidence in the ability of
our national genius to evolve new social systems and philosophical formulae. They were determined to steer
dear of both capitalism as well as communism. They were opposed to the crude materialism of West and felt
that in the absence of Bharatiya spiritual values it was impossible to evolve any healthy social structure free
from internal dissensions and strife. They had implicit faith in the scientific character and ultimate victory of
Bharatiya Social Order based upon the tenets of integral humanism.

The pioneers of this new movement rejected the Class Concept. They stood neither for class-conflict nor for
class-collaboration. The class concept - which is a fiction - would ultimately result in the disintegration of the
nation, they declared. They however, refused to identify national interests with those of the privileged few in
the economic, political or any other department of national life as the criterion for determining the level of
national life. The criterion for determining the level of national prosperity was, according to them, the living
condition of the financially weakest constituent of the nation. To improve the lot of the underdog they would
resort to the process of collective bargaining, so far as possible, and to conflict, wherever necessary.
Exploitation, injustice and inequality must be put an end. The ratio between the minimum and the maximum
income in the land should be 1: 10.

For industrial workers, ttjey demanded security of service, need based minjmum wage, wage differentials on
the basis of job-evaluation, right to bonus as deferred wage, full neutralisation of price-rise so as to ensure
the real wage, massive industrial housing programmes, and integrated social security and welfare schemes.
• Form ation o f CITU and UTUC (LS)
By 1965 a splinter group of socialists headed by Shri George Fernandes formed a second Hind Mazdoor
Panchayat. The split in the communist movement inevitably divided the ATTUC, leading to the emergence o :
the Centre of Indian Trade Unions (CITU) in 1970. The LT71IC was also split into two along ideological lines,
the splinter group calling itself UTUC (Lenin Sarani) i.e., UTUC (LS). Regional Trade Union Organisations
affiliated to regional political parties such as the DMK, AIADMK and MDMK in Tamilnadu and the Shiv Sena in
Maharashtra, have also emerged.
A Tribute to the Legend_________________________________ _ Page 13
• CTUOs in India (Central Trade Union Organisations)
At present there are twelve CTUOs in India as follows:
1. Bharatiya Mazdoor Sangh (BMS)
2. All India Trade Union Congress (AITUC)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kamgar Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labour Organisation (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC - LS)
. AITUC, HMS to Merge
In a significant development, two CTUOs, the AITUC and HMS, have decided to merge. The decision to merge
in a time bound manner was taken at a joint meeting of the working committees of the trade union
organisations held on March 24, 1996.
• Verified Membership of CTUOs
BMS ON TOP
Verified membership of Central Trade Union Organisations as supplied by the Chief Labour Commissioner to
the CTUOs for the cut off date 31-12-1989:

Sr. Name of the Organisation Industrial Agricultural Total

No. Workers Workers

1. BMS - Bharatiya Mazdoor Sangh 27,69,556 3,47,768 31,17,324

2. INTUC - Indian National Trade Union Congress 25,87,378 1,19,073 27,06,451

3. CITU - Centre of Indian Trade Unions 17,68,044 30,049 17,98,093

4. HMS - Hind Mazdoor Sabha 13,18,804 1,58,668 14,77,472

5. AITUC - All India Trade Union Congress 9,05,975 17,542 9,23,517

6. UTUC (LS) - United Trade Union Congress - Lenin 4,33,416 3,69,390 8,02,806
Sarani

7. UTUC - United Trade Union Congress 2,29,225 3,10,298 5,39,523

8. NFITU - National Front of Indian Trade Unions 3,63,647 1,66.135 5,29,782
9. TUCC - Trade Unions Co-ordination Centre 30,792 1,99,347 2,30,139

10. NLO - National Labour Organisation 1,36,413 2,464 1,38,877

11. HMKP - Hind Mazdoor Kamkar Panchayat 3,516 - 3,516
A Tribute to the Legend________________________ _________________________________________ Page 14
12. IFFTU - Indian Federation of Free Trade Unions : 428 428

1,05,47,194 17,20,734 1,22,67,928

Source: Chief Labour Commissioner (Central), "Report on CTUOs' Membership Verification" as announced
on July 16, 1994, Organiser, August 28, 1994, p.9.
• State wise Number of BMS affiliated Unions and their Membership

31 Dec 1989 31 D ec 1 9 9 7
States Unions Members Unions Members
Andaman & Nicobar 4 932
Andhra Pradesh 383 5 74 017 407 8 92 734
Arunachal Pradesh 1 175 1 310
Assam 18 75 080 24 1 45 209
Bihar 174 3 29 830 221 7 19 695
Chandigarh 15 5 000 14 6 016
Delhi 101 4 57 811 112 6 44 793
Goa 6 3 029 9 20 602
Gujrath 87 20 216 93 1 95 739
Haryana 132 51 064 163 1 78 940
Himachal Pradesh 66 40 131 77 51 429
Jammu &. Kashmir 30 16 342 31 26 508
Karnataka 118 59178 123 68 280
Kerala 152 28 618 186 95 755
Madhya Pradesh 198 1 6 8 759 454 6 86 126
Maharashtra-I 257 2 03 000 218 4 38 382
Maharashtra-II 69 1 10 330 70 1 16 845
Manipur i. .•
1 208
Meghalaya 1 1320
Nagaland - *1 250
Orissa 28 6 218 102 94 049
Pondichery 2 104 1 98
Punjab 210 1 19 797 241 1 99 725
Rajasthan 250 2 29 036 467 4 80 291
Tamilnadu 26 26 542 53 67 279
Tripura 1 450 ‘ 8 3 713
Uttar Pradesh 488 4 50 826 656 6 93 349
West Bengal 156 141521 220 2 22 308
Total 2 969 31 17 324 3 957 60 50 635
A Tribute to the Legend____________________________ Page 15

Analysis of Membership of BMS as on 31-12-2002

All India (Industry-wise)

Sr. Industry Unions Members
1 Textiles 236 3 36 717
2 Clothinq 36 1 02 709
3 Jute 54 83 586
4 Iron and Steel 53 96 692
5 Metals 26 12 934
6 Enqineerinq 402 3 39 605
7 Defence 183 94 236
8 Electric, Gas and Power 133 3 34 021
9 Transport Railways 22 8 94 448
10 Water Transport / Waterways 5 2 048
11 Roadways 226 4 68 711
12 Air Transport 4 2 070
13 Plantations 34 1 36 843
14 Coal Mininq 32 2 73 608
15 Mininq of Minerals other than Coal 60 63 880
16 Ouarryinq 16 66 243
17 Aqriculture and Rural workers 132 15 83 303
18 Sugar 157 1 36 715
19 Cement 64 23 575
20 Chemicals 215 59 954
21 Buildinq Constructions 110 3 10 332
22 Food and Drinks 197 1 19 990
23 Tobacco 42 7 06 351
24 Tanneries and Leather goods manufacturers . 17 12 639
25 Paper and Paper Products 64 17 259
26 Printinq and Publishing 56 21 056
27 Local Bodies 243 1 50 223
28 Glass and Pottries 25 7 374
29 Petroleum 25 36 027
30 Salaried Employees and Professional workers 338 3 19155
31 P And T Workers 10 2 65162
32 Hotel, Restaurants, Tourism and Others 55 69 555
Hospitals and Dispensaries, Medical and Health Services
33 and 71 74 217
34 Personal Services 95 1 72 021
35 Financial Institutions 358 1 77 846
36 Ports, Docks and Maritime 15 8 778
37 Coir 2 800
38 Brick Kilns / Tile Manufacturing 19 95 821
39 Wood, Plywood and Wood Products 24 30 506
40 Rubber Products 34 5 842
41 3encil Industry 3 1 374
42 Soaps and Detergents 4 1 060
43 Self Employees 44 55 469
44 Miscellaneous 346 5 47 593
Total 4 287 83 18 348
A Tribute to the Legend Page 16
Analysis of Membership of BMS as on 31-12-2002
A ll India (State-w ise)_______________
Sr. Industry Unions Members
1 Andaman & Nicobar 8 1346
2 Andhra Pradesh 392 15 91 242
3 Arunachal Pradesh 1 309
4 Assam 29 163 596
5 Bihar 125 4 17 903
6 Chandiqarh 14 6 417
7 Chattisqarh 59 2 65 258
8 Delhi 117 5 26 571
9 Goa 18 73 253
10 Gujrath 105 2 11 369
11 Haryana 151 1 58 136
12 Himachal Pradesh 129 94 657
13 iammu & Kashmir 41 30 324
14 Jharkhand 117 3 98 637
15 Karnataka 110 66 307
16 Kerala 209 2 02 154
17 Madhya Pradesh 388 7 98 516
18 Maharashtra 323 5 72 226
19 Vidarbha 103 2 09 687
20 Manipur 3 5 663
21 Meqhalaya 1 1 102
22 Mizoram 4 5 159
23 Naqaland
24 Orissa 136 5 38 450
25 Pondichery 1 98
26 Punjab 287 2 75 149
27 Rajasthan 395 5 98 976
28 Tamilnadu 79 1 00 506
29 Tripura- ? .v-- 8 4 006
30 Uttar Pradesh 661 6 53 661
31 Uttaranchal 90 1 09 101
32 West Banqal 183 2 38 569
Total 4 287 83 18 348
A Tribute to the Legend_____________ Page 17
"Sui Generis" (Only one of its kind)

DISTINCT FEATURES OF BMS

In India many unions are functioning simultaneously in one and the same establishment. On this background
the BMS has some distinct features of its own:

a) One of its basics is to build a structure of society, which would promote India's contribution to
humanity.

b) It has a firm belief in Indian Culture and its ultimate success, and takes inspiration from India's
ancient culture and spiritual concepts.

c) Naturally, It believes that the whole humanity is one and different nations are only its various facets.
It therefore rejects the "Class Struggle" theory of Marx and hence the fight of BMS is not against any
class but against injustice and exploitation.

d) It believes in co-existence of nations and tries to promote brotherhood among them.

e) It has a nationalist outlook not attached to any -ism (capitalism, socialism or communism).

f) It is not linked or to any political party and is therefore independent of party politics.

g) It is a genuine trade union working not only for the economic needs of the workers but also for their
total upliftment.

h) Unity in diversity is the special feature of Indian culture and accordingly BMS tries to bring together
different trade unions and participates in joint campaigns for the solution of workers problems. No
compromise on concepts and leaving the stamp on the deliberations of joint campaign committees
and joint actions has been the tradition of BMS.

i) It does not believe in violence and destruction/ and adheres to constructive approach in all its
struggles.

j) It considers workers interest in the context of National interest and hence propagates workers
participation right coupled with duty.

k) It believes in increasing production with proper distribution and hence propagates PRODUCE
MAXIMUM but CONSUME WITH RESTRAINT.

l) It strives for removing foreign influence on Indian Society.

m) It considers STRIKE as a last resort after failure of bilateral talks, negotiations and arbitrations.
• Philosophical Background of BMS
The BMS has ideologically a distinct approach than the rest of the Central Trade Union Organisations in India.
Bharatiya culture forms the ideological basis of the BMS The word culture denotes a trend of impressions on
the mind of a society which is peculiar to its own, and which again, is the cumulative effect of its passion,
emotion, thought, speech and action throughout its life. Bharatiya culture looks upon life as an integrated
whole. It has an integrated viewpoint. It admits that there is diversity and plurality in life, but always attempts
to discover the unity in diversity. The diversity in life is merely an expression of the internal unity. The unity in
seed finds expression in various forms - the roots, the trunk, the branches, the leaves, the flowers and the
fruits of the tree. Unity in diversity and the expression of unity in various forms have remained the central
thought of Bharatiya culture or "Integral Humanism." If this truth is whole-heartedly accepted then there will
not exist any cause for conflict among various powers. Conflict is not a sign of culture or nature. "Integral
A Tribute to the Legend___________________________ __________________ ___________________Page 18
Humanism is the name given to the sum total of various features of Bharatiya culture- abiding, dynamic,
synthesizing and sublime", Pandit Deendayal Upadhyay propounded. This is the idea, which determines the
direction of BMS.
It would be wrong to presume that labour problems are related to one section of population only. Such an
exclusive view would be very unrealistic. Deterioration of working and living conditions of labour cannot be a
sectional problem of labour alone; it is a malady adversely affecting the health of the entire social organism.
Labour has always been regarded as the very foundation of the Bharatiya social structure. It is an integral and
vital part of society. The character of its problems, therefore, is not sectional but national. To protect and
promote its interests is, therefore, the natural responsibility of the entire nation. BMS is pledged to fulfil this
fundamental national duty towards labour.
Marxists and socialists of every variety conduct their trade unions as instruments of intensifying class conflict
with the ultimate goal of establishment of socialism. BMS is a votary of nationalism and integralism. Therefore,
it rejects the class conflict theory. The class conflict, carried to its logical length, would result in disintegration
of the nation. All the nationals are only so many limbs of the same body. Their interests cannot, therefore, be
mutually conflicting. BMS is opposed to class struggle based on hatred and hostility, but it has always
struggled against the evil forces of inequality, injustice and exploitation
With a view to achieving national prosperity and eradicating poverty, BMS is pledged to "maximum production
and equitable distribution". Capitalism over-emphasises the importance of production. Socialism over­
emphasises the aspect of distribution. But BMS lays equal stress on both. Maximum production is the national
duty of labour, but at the same time equitable distribution of the fruits of production ' the legitimate right of
workers. BMS has, therefore introduced in the labour field a new slogan based on patriotism: "We will work in
the interest of the nation and will demand full wages".
• Non-Political Trade Unionism
Politicisation of labour movement and affiliation of Central Trade Union Organisation with one or other political
parties led to division of trade union movement in India. Affiliation to political parties results in inter-union
rivalries. INTUC has links with Congress. It supported the policies of congress government. Even when it
disagreed with government's action it indulges in nothing more than a mere verbal protest. By virtue of
the common source of inspiration and common leadership, the INTUC has the tradition of working almost as a
wing of the congress party with unassailable commitment to the party's policies and programmes. Since
inception many leaders of the INTUC have been contesting the parliament and assembly elections. Several of
them have been given berths in the council of ministers at the central and state levels....".
AITUC adopts the policies and ideologies of communist party of India (CPI). CITU has affiliation with
Communist Party of India-Marxist (CPI-M). HMS follows the principles and policies of the Socialist Party.4
UTUC has close relationship with the Revolutionary Socialist Party and other splinter parties of the left.5
Non-political unionism has been held out as the only solution to the problems that beset trade unions. One of
the most ardent advocates of this line was Shri V. V. Giri, the veteran trade unionist and former President of
India. "It is time that workers realize that party politics are completely out of place in trade unions, that they
should not play the role of pawns in the game of party politics, and that their organisations are concerned first
and last with their interest and welfare. Trade union leaders and party leaders should also take active steps to
ensure that workers are weaned away from disruptive party leanings, so that genuine trade unionism may
grow in the country".
The BMS has kept itself away from power-hungry politics from its inception. Trade union can ensure that
powerful influence of workers on management and government policy only when the principle of non-political
trade unionism is followed. Of course every worker is conscious of his rights and duties as a citizen and is free
individually to join or not to join, and work or not to work, for a political party of his choice. But as union
members collectively the workers must keep out of politics.
BMS is pledged to eradicate economic inequality and exploitation; but it is not 'Leftist'. It rejects the class
conflict concept of Marx; but it is not 'Rightist'. It is purely nationalist and has accepted the principle of
A Tribute to the Legend ___________________________________________ Page 19
genuine trade unionism i.e. an organisation for the workers, by the workers and of the workers within the
framework of national interest. In the XII World Trade Union Congress of World Federation of Trade Unions
(WFTU) of Communist Countries, held in Moscow, in 1990, it was admitted by almost all delegates that the
trade unions of labour must keep themselves away from the power and political parties. This again is an
international recognition of the basic concept of BMS on non-political trade unionism.
• Motto of BMS
The BMS has coined the following three sparkling phrases to depict in brief its distinctive approach to the
Trade Union Movement:

N A T IO N A LISE T H E L A B O U R

LA B O U R IS E T H E IN D U S T R Y

AND

IN D U STR IA LISE T H E N ATIO N

• Distinct characteristics.
1. Nationalistic outlook.
2. Constructive Approach.
3. Idealism, not expediency.
4. Adherence to Constitution and democratic trade unionism.
5. Perfectly non-political character.
6. Admission to all Bharatiya workers irrespective of their caste, creed, community, or sex.
7. Conviction that class concept is a myth.
8. Realise that labour interests are identical with national interests.
9. Determination to steer clear of both, capitalism as well as communism.
10. Equidistant to all power centres.
Since 1955 the BMS has introduced many slogans befitting its ideology to the labour movement like:

> Bharat Mata Ki Jai

"BHARAT MATA KI JAY" was a slogan quite alien to the Indian Labour Field. Workers were taken by
surprise when BMS first introduced this slogan and thus tried to bridge the gulf between the sectional
and national viewpoints. Being essentially patriotic, workers were not slow to adopt this slogan.
> Workers, unite the world.

In 1955, the widely current slogan was: WORKERS OF THE WORLD? UNITE - In reality this was a
slogan of all round disruption. We rejected it and replaced it with our own slogan: "WORKERS UNITE
THE WORLD".

> Nationalise the Labour, Labourise the Industry, Industrialise the Nation.

BMS also propagates the concept of labourisation based on the theory of the workers being co-owners
of the Industry on the basis of a lair evaluation of the labour capital deployed. Hence the slogan
"Nationalise the Labour, Labourise the Industry and Industrialise the Nation". BMS also
demands, the constitution of a national commission on-the problems of ownership of industry, which
should suggest the pattern of ownership for each industry taking into consideration the particular
characteristics of that industry and the total requirement of the national economy.
A Tribute to the Legend ______________________ _________________________________________Page 20
r- Desh ke hith me karenge kam, kam ka lenge pura daam. (We will work in the interest of the country
and will take full remuneration for the work.)

r- Tyag, Tapasya aur Balidan (Sacrifice, penance, and martyrdom) that are the main hallmarks of the
BMS Karyakarta (Workers).
• Patterns of Ownership
On the practical plane, BMS was the first to highlight the fact that neither nationalisation was the only
alternative to private capitalism, nor west a panacea for all industrial maladies. There were various other
patterns of industrial ownership such as, municipalisation, co-operativisation, democratisation, joint industry,
joint sector, self-employment, etc. etc. It urged for the constitution of National commission on the pattern of
industrial ownership. The pattern of ownership should be determined in the light of peculiar characteristics of
each industry, and the total requirement of national economy. It firmly rejected both the extremes of "all
nationalisation" and "no nationalisation"
Pleading for the organisation of autonomous Financial Institution to channelise small saving of poor people
into industrial investments for the benefit of the specific industries, the BMS has said that the industrial
structure in the future would continue to be complex, with various patterns of ownership, existing side by
side/ but greater stress will have to be laid on setting up industries which will be:

Financed by Commoners
Owned by Workers
Supervised by Institutions
Decentralised by Technologists
Served by Experts
Coordinated by Planners
Disciplined by Parliament
Assisted by State
Utilised by Consumer
&
Governed by Dharma
• Industrial Family
It was emphasized by B.M.S. that National goal cannot be achieved if there exists any feeling of enmity. The
B.M.S. therefore, deprecated the theory of class conflict and emphasized that all the constituents should act
and work in unison. This can be achieved by developing the concept of "family" in the industry.
• Symbol of BMS

The BMS symbol characteristically Bharatiya, while its industrial wheel symbolises industrialisation, “BALI"
agriculture and general prosperity and human fist workers unity, the real stress is on the opposable human
thumb. No implement weapon or means of production could have been evolved, had man not been blessed
with the opposable thumb. In this sense, human thumb is the real origin of all machinery, hammer, sickle,
plough, charkha or spuntik. NO HUMAN LIMB HAS SO FAR FOUND ANY P U C E IN THE SYMBOL OF OTHER
TRADE UNION CENTERS.
• National Labour Day
In our country VISHWAKARMA DAY is being observed as National Labour Day from time immemorial. The
Bharatiya Mazdoor Sangh boldly introduced this day, happily enough it has received wide acceptability from
the workers, though some of the so-called radical labour leaders are still hesitant on the point.
• Viswakarma Sector
A Tribute to the Legend_____________________________________ ________________________ Page 21
BMS was the first trade union centre to recognize the special importance of 'self-employment sector1 Self-
employment is the best status for men in society. Economic life without alienation is the life of ownership of
one's own economic activity in agriculture, industry, trade and services. This is self-employment as a concept
in economics.20 Goldsmiths, blacksmiths, potters, tailors, engravers, barbers and washer men are self-
employed. BMS rightly calls this self-employment sector as the Viswakarma sector. The western economics did
not recognize this sector of self-employment which was neither a 'private sector' nor a 'public sector' but the
'people's sector'. Later on the Household Industries Act was passed by the erstwhile communist Soviet Union.
Communist China and Hungary also had made legal provisions for the self-employment sector, recognizing its
importance.
BMS urges a separate department under the Ministry of Labour and Employment to assist the self-employed
persons. Self-employed people cannot be exploited nor can they exploit others. There is neither class war nor
take-over of the state. It is a peaceful transformation.21 Self-employment sector should get more
encouragement than at present.
• Functional Representation in the Elected Bodies
BMS calls for the introduction of functional representation in the Lok Sabha and State Assemblies. The
territorial representation should be reduced numerically, each member being required to represent a larger
electorate. In industrial sector, workers of each major industry and minor industries or their trade groups
should be given representation in the Lok Sabha and the State Assemblies. The organised labour should be
given representation on Local-Self Government bodies and university senates.
There should be de-limitation of industrial constituencies on the national, the state and the local level for the
above purpose. On the national level, the number of representatives to be elected by the workers of every
industry should be directly proportionate ‘ to the extent of its contribution to the national income, BMS
envisages. • ,

• Guidelines of the Future Socio-Economic Order

BMS is striving not only for the solution of immediate problems but also for the gradual evolution of the
guidelines of the future socio-economic order. The memorandum on Labour Policy' submitted to the National
Labour Commission on 22nd October. 1968. The National Charter of Demands of Indian Labour - An Order of
Duties and Disciplines" submitted to Shri V. V. Giri President of India on 17th November, 1969 and "the
National Charter of Directives of Bharatiya Workers" submitted to Dr. Shankar Daval Sharma, President of
India on 20th April, 1993 are the documents of the collective thinking and the collective wisdom of BMS.
These are also the guidelines to the architects of Indian Labour Policy for the 21st Century.
While opposing the New Economic Policy (NEP) and New Industrial Policy (NIP) BMS has suggested some
positive alternatives. It has vigorously condemned the abject surrender to the conditionalities of the
International Monetary Fund and World Bank <is that would amount to giving up our sovereignty. BMS
considers the present moment as an opportunity to build up Swadeshi Model of Economy. D.B. Thengdi's
'Third way" offers the general guidelines of the new socio-economic order. The ideal national paradigm of
value-systems, institutional arrangement and parameters are given in the formulation of BMS.
LABOURISATION____________ _____________________________________________________
• Conceptual Framework

The credit for introducing the "LABOURISATION" goes to BMS only. It stressed that all categories of
"employer" and under the various industrial ownership, the labour of workers must be evaluated in terms of
shares and workers raised to the status of shareholders contributing labour as the share. As a standard bearer
of Bharatiya culture the BMS proclaimed that surplus value of labour is managed and deployed by employers
A Tribute to the Legend________________________________________________________________ Page 22
(accountable to themselves) under capitalistic order: by state (accountable to party) under communistic order
and by workers (accountable to the nation) under Bharatiya order.
The BMS declared THE ONWARD MARCH OF LABOUR along the following lines:
From
The Master-Servant relationship
Through
A Better Deal
Joint Consultation
Joint Management
Auto-Management
Participation in ownership
To
Worker's Ownership.
• ESOP (Employee Share Ownership Plan)
Workers' share ownership plan constitutes the major form of financial participation. It is technically called as
Employee Share/ Stock Ownership Plan (ESOP). The scheme gives the opportunity to employees to own
shares in their own company. The concept of ESOP was originally developed in 1967 by Louis Kelso, San
Francisco lawyer and investment banker, and author o f books titled 'The Capitalist Manifesto’ and 'How to
Turn Eighty Million Workers into Capitalists on Borrowed Money'. His objective was to turn workers into
shareholders. Kelso argued that conventional capitalism is a closed loop financial system the rich get richer
and the poor get poorer. People, he said, get rich not through wages and salaries but by owning shares in
companies. With ESOP workers are able to get a share in this gain.
• > Modus Operandi of ESOP
When an employer adopts the ESOP, workers form a trust to buy and hold their shares. This trust then
borrows money from a bank to buy some or all of the company's shares at fair market value. The trust hands
over the money to the employer in return for shares. For his part, the employer guarantees the repayment of
the borrowed money, and settles it over a period of time by making contributions to the Trust.
Why should any employer do this? In the USA the most important reason is that he gets major tax
concessions. Contributions to the trust to pay off the loan are considered by law to be deferred wages. They
can be deducted from the company's income, exactly as wages are, before computing tax. Further changes in
the law in 1984 have made ESOPs even more attractive. Half the interest earned by banks from loans
advanced to buy shares is free of tax. Companies can deduct as an expense dividends paid on shares held by
ESOPs, yet another advantage to the employer is that ESOP protects his company from takeover by business
rivals. Since shares are not owned directly by workers but indirectly through the trust, they cannot be sold
freely in the stock market.
Because ESOPs are so attractive to employers, workers and banks, the movement has received an enormous
boost in the USA. About 10,000 companies have adopted the plan since 1974. On an average, workers hold
about 20 percent of the shares in ESOP firms. And there are at least a thousand firms where they hold
majority shares.
The ESOP shares are not individual property, which workers can freely sell. The decision to own the shares is
also not an individual decision. The shares are owned by the trust Loans to buy shares are taken by the trust.
And it is through the trust that the employer makes payments to clear the loan ESOP shares are thus owned
by all workers. Individual workers can sell their rights when they leave or retire, but the trust usually buys
them back.
A Tribute to the Legend___________________ Page 23
• Arguments in favour of Labourisation
In the first place, it is often considered to be a means of improving motivation and productivity. It leads to
greater commitment, lower absenteeism and labour turnover, greater investment in firm-specific human
capital and reduced intra-firm conflict. In contrast to individual incentives, financial participation is also likely
to enhance teamwork and a cooperative spirit, thereby facilitating improvements in work organisation.
• Labourisation: Global Experiences
Workers' financial participation in enterprise results is hardly a new idea. However, it has only recently
captured the attention of economists and policy makers, not only in industrialised countries but also in
economies in transition, particularly in Central and Eastern Europe. Moreover, although financial participation
has been widely discussed at the policy level, little is known about the application of financial participation
schemes in practice.
A clear distinction is made between the experiences of the industrialised countries and those in Central and
Eastern Europe. While companies in the industrialised countries are actively promoting financial participation
schemes as an efficient and flexible payment system, which can improve motivation and productivity, in
Central Eastern Europe financial participation is mainly linked to the privatisation process.
• The Importance of the Legislative Framework
Some countries have addressed the issues of financial participation in a more comprehensive manner than
others. In France and the United Kingdom, the law envisages a variety of financial participation schemes, with
different tax incentives, which have recently been extended. This support has attributed to the growth in the
number of financial participation agreements in the two countries. In the USA a notable slow down in
productivity growth after 1973 generated increased interest in worker participation. A number of tax incentives
were, therefore, introduced mainly for deferred profit sharing and ESOPs
Financial participation in Eastern European countries is closely linked to their privatisation processes, as
illustrated by recent legislative developments and government statements in favour of share ownership
schemes. In all these countries, the first stage of privatisation is the transformation of state enterprises into
joint stock companies, in which workers' share ownership plays a central role. Hungary is a typical example,
which has implemented various forms of workers' share ownership. Government encouragement has
promoted the rapid development of ESOPs in the privatisation process.
These schemes are more decentralised in Japan, where financial participation seems to be part of an overall
management policy and is not, therefore, promoted by legislation or other public measures. It is implemented
by the social partners, viz., employers, employees, unions and the management at the plant level and is often
developed along with participation in decision-making, work sharing and internal labour mobility.
• The Japanese Experience
The development of workers' financial participation depends on a series of social, cultural and historical
factors. This is confirmed by the Japanese experience, which is characterised by a notable development of
ESOPs. In the absence of direct formal government support, this appears to be principally due to cultural,
industrial relations and other institutional factors. ESOPs have been introduced by more than 90 percent of the
firms listed on Japanese stock markets and by 60 percent of all corporations. The average stock held by each
employee through an ESOP was estimated at US $ 14,000 in 1988.® In addition to ESOPs, cash based profit
sharing bonuses account for an amount equivalent to about 25 percent of total pay, making Japan the country
in which financial participation is most advanced. 97 percent of firms with 30 or more employees pay bonuses
to their regular staff twice a year In addition, more than 90 percent of Japanese firms operate a deferred
profit sharing scheme.9 The success of ESOPs and other forms of financial participation in Japan can be
understood on the basis of a number of factors. Unique features of the Japanese Industrial Relations System
are:
a) The Lifetime Employment System;
b) The Seniority Wage System,
A Tribute to the Legend___________________________________________ __ Page 24
c) The Enterprise Union; and
d) The Bonus System
The first three characteristics are called the Three Sacred Emblems7 of Japanese labour policy
Lifetime employment is a unique feature of the working of large Japanese firms. It accounts for the
exceptionally dynamic functioning of a large section of Japanese industry. The system presupposes that it is
the employees that ultimately make the firm productive, creative and respectable To Japanese management,
guarantee of lifetime employment to its staff is a sacred obligation. Lifetime employment means employment
till the employee attains the age of retirement which is normally 55 years but it is now being extended to 58
or W years Top level executives have, however, no mandatory retirement age.
Lifetime employment is not a legal or contractual obligation. And it is open to the employee to leave the firm,
which, however, is rare. There is no legal restriction on the right of the employer to discharge or dismiss an
employee, which is rarely resorted to. Mainly large firms adopt this system and about 30-35 percent of the
total labour force is covered by this system. But these employees may be described as Japan's standing
industrial army-the backbone of her economy. Under this system, employment has emotional and moral
implications. Not only the employee but his family also develops an attachment for the firm and the employee
tries to serve the company to the best of his abilities. The tangible advantages of the system are now well
recognised. Lifetime employment involves lifetime training as well which facilitates innovation and which
strengthens the urge for excellence in work. Lifetime employment is described as one of the corner stones of
the industrial relations system in Japan.
Japanese firms like Sony are introducing lifetime employment in their factories even in the USA with great
success. For instance, the rate of absenteeism in the Sony factory in America is only 0.1 percent. American
workers in Japanese factories in the USA take interest in their work and make valuable suggestions for
improving productivity and quality. Japanese management is equally effective in a totally different American
Culture.
The second salient feature of Japanese industrial relations system is the seniority wage system. The system
guarantees that wages and other benefits increase steadily from the time of appointment. This is generally
restricted to lifetime employees.
The enterprise union system of Japan is found to be very useful in strengthening the individual worker's ties to
his firm. In Japan every enterprise would have its own independent union. It ensures better mutual
understanding between union official and management.
The Japanese firms pay their employees bonuses twice in a year. The payment is based on the financial
achievements of the firm and not linked with the productivity of the workers. The system has three great
advantages:
(a) The workers become aware of the vital importance of the successful functioning of their firm.
(b) The Japanese workers tend to live within their monthly regular earnings and the bonuses are mostly
saved. This is one of the main reasons why Japanese households save on an average 17 percent to 19
percent of their annual income,
(c) The bonuses represent a form of deferred payment, which enables the firm to generate additional working
capital.
Apart from the congenial and harmonious industrial relations climate, there has been indirect public support
for workers' financial participation in Japan, as a means of preventing foreign takeovers of Japanese firms
• Attitudes of the Social Partners towards Workers’ Financial Participation Attitude of
Employers' Associations
Employers' associations have usually supported enterprise level schemes introduced on a voluntary basis, with
the design of the scheme being left to the discretion of the enterprise. They oppose any binding arrangement.
Employers usually consider financial participation as an important element of human resource management for
A Tribute to the Legend____________________________________________________ _____________Page 25
the purposes of improving employee motivation and commitment. They have argued for the introduction of
tax incentives.
• Enhancing Productivity
There is an impressive wide-ranging body of evidence for a positive association between workers' financial
participation and productivity gains in the industrialised countries. In their survey of empirical results,
Weitzman and Kruse, in the most comprehensive book on this issue, edited by Blinder find a degree of
consensus, which is most unusual in empirical research. The authors, from their survey of a wide variety of
case studies and attitudinal surveys conclude that profit sharing schemes have a positive and significant effect
on productivity. Studies on European countries, recently surveyed in the Pepper report, also concur in pointing
to a positive association between financial participation and productivity. This report led the Commission of
the European Communities to propose its recommendation on financial participation.
In Belgium, France, the United Kingdom and the United States of America it is found that financial
participation schemes tend to have been introduced and grown particularly in large profitable export oriented
enterprises. In Japan it is found that the probability of a firm introducing financial participation schemes is
higher in companies in which human resources are a more important factor in their success. The results of a
survey carried out among 140 Belgian enterprises also emphasise the positive effects of financial participation
on workers' motivation. In Italy, a survey carried out on a sample of 179 enterprises suggests that enterprises
with financial participation experienced a substantial (12 percent) increase in production following the
introduction of these schemes. Surveys undertaken in the United Kingdom show that financial participation
has made employees more profit conscious and increased their sense of commitment to the company.
According to a survey undertaken in the former Czechoslovakia, the impact of financial participation differs
according to the type of enterprise and category of worker. Workers' share ownership appears to have a much
greater effect on motivation in small firms. Workers in small units can observe and evaluate the effects of
their efforts on the profits of their company. Technicians and other skilled employees show greater interest in
financial participation schemes and are more prepared to work for lower wages for a certain period in order to
contribute to the future prosperity of their firm.
• Workers' Participation in Decision making, a Catalyst
A greater level of concern by workers for the success of their enterprise, as a direct result of their financial
participation, can have the effect of reducing conflict in the work place, increasing the identification of workers
with the enterprise and lengthening their time horizon. This can be strengthened by measures to facilitate
workers' participation in decision-making. Several examples of the companies from industrialised countries
suggest that worker1 financial participation schemes succeed more often when they are combined with some
kind of workerss participation in management. Combination of financial participation and increased employee
responsibility has contributed to Japanese economic miracle.
The global experiences of Labourisation suggest that the different forms and paths taken by financial
participation depend largely on national systems of industrial relations and the attitudes and bargaining
powers of the social partners.
• Few Commendable Examples of Labourisation Abroad
> The Mondragon Cooperatives
The Mondragon Cooperatives in Spain are famous throughout the world as the most successful worker
owned firms. The Mondragon has over a hundred cooperatives with 20,000 members, producing
refrigerators, washing machines, computerised machine tools, electronic components and automobile
parts. The uniqueness of Mondragon lies in its ability to combine democratic control with business
efficiency. It ensures continuous employment to its members. 45 percent of the profit is credited to
the capital accounts of individual employees, which can be claimed only on retirement. One of the
secrets of Mondragon's success is that no firm is allowed to grow too big. When the size of the
individual firm is kept small, there is greater scope for interaction and effective participation by
ordinary workers.
A Tribute to the Legend_______ Page 26
^ Omak Wood Products
Omak Wood Products, Washington is a successful employee owned company under ESOP. The
employees have borrowed $ 50 million to pay for the buy out of business and to provide for working
capital. They decided to set aside 10 percent of their wages until the debt is repaid. The company is
performing well.
^ National Steel Corporation
The National Steel Corporation (NSC) of the USA was a sick unit. While buying shares in NSC the
workers entered into an agreement with the company, which provided for the workers’ participation in
management. The representatives of the workers and management of NSC meet monthly once
regularly, to share information in the decision making process. As a result, NSC, once a losing
company has become a producer of cheap and best quality steel products and prompt supplier in the
market. Thus, the employees have saved their own fortune and also the fortune of the factory.
^ Tower Colliery
There was large scale closing down of coalmines owned by government in England and thousands of
miners were retrenched. In the course of privatisation process, Tower Colliery, a prominent coal mine
in England was taken over by its retrenched workers. 239 workers contributed $ 8000 each out of
their retrenchment compensation and successfully bid reworking the mine again. The amount
contributed by the workers was the lion's share of the total amount needed. The mine is functioning
remarkably well. The colliery has signed a $70 million contract to supply coal for another five years.
s- Precision Tool Production Ltd.
Videoton, the largest Hungarian electronic telecommunications State enterprise employing nearly
20,000 employees, was divided into 21 companies in the privatisation process. Precision Tool
Production Ltd. is one among them. Its employees have contributed nearly 85 percent of the capital,
from their savings and loans. After the transformation of the company, the employees spent their
evenings or weekends working in the factory to meet the demand. Within one year, the employees
not only paid back their loans but also were able to purchase the land and buildings and machinery,
which were still owned by the state enterprise.
^ International Freight Transport Company
An international freight transport company of Hungary, formed under privatisation process, struggled
to survive. So, the employees decided to start a new company. They contributed 50 percent of the
initial capital and the remaining amount was contributed by the parent company. The employees
participating in this plan were particularly motivated to preserve their jobs and improve the
performance of the company. Their expectations and hard work were crowned with success; they
were able to broaden their market share in spite of tough competition and general recession. Within
one year, its employees owned 90 percent of the shares.
s' Chyne Agricultural Cooperative
This agricultural cooperative in Czech Republic has successfully been transformed into a joint stock
company with 49 percent of its assets offered to employees in the form of shares. This made it
possible to preserve the participatory principles of the cooperatives and motivate the workers.
/- Agrokombinat Slusovice
In the privatisation process, the cooperative Agrokombinat Slusovice was transformed into a series of
small and medium sized firms with workers’ share ownership and profit sharing. It led to improved
efficiency and diversification of the bio technological and microelectronic production to meet the
challenge of international competition. As a result, the firm has managed to attract most of the highly
qualified workers.
s' Silesian Factory Kable
A Tribute to the Legend___________________________________ ______________________________ Page 27
Silesian Factory Kable is a polish firm. Its decision to sell the shares to the employees at a 50 percent
discount was quite successful, with 76 percent of the workers taking advantage of this opportunity.
According to the management, this has improved the social climate within the firm as well as
industrial relations in general, despite a slump in the polish electrochemical industry, which used to
absorb Kable's production.
As a conclusion to this section, illustrative data are provided on the scope and nature of financial
participation in three Japanese companies in different sectors.
> Hitachi (Electronics)
The company introduced an ESOP in November 1974. In August 1985, 34.8 percent of employees
were participating in the plan. The average stake of participants is JPY 1.2 million. In 1984, the
company paid the average employee JPY 0.517 million (2.65 months' regular pay) as a summer
bonus, and another JPY 0.548 (2.72 months' regular pay) as a year-end bonus.
A Hoya (Precision Engineering)
The company introduced an ESOP in October 1970. In March 1985, 47 percent of employees were
participating in the plan. The average stake of participants is JPY 2 55 million. In 1974, the company
(currently one of the top manufacturers of optical instruments in the world) introduced a profit
sharing plan with the explicit objective of increasing productivity. Around 40-45 percent of the annual
bonus is linked to profits. The bonus represents 6-7 months' regular pay and is clearly above the
industry average both in terms of cash and months of regular pay. Unions support the plan, and there
is a very thorough Joint Consultation Committee, which meets once a month and has many ad hoc
sub committees. Quarterly profit reports are provided to the Joint Consultation Committee.
> Mitsui Bank
The company introduced an ESOP in August 1969. In 1985, 67.6 percent of all employees were
participating in the plan. The average stake of participants is JPY 2.36 million. In 1984 the bank paid
the average employee JPY 0.915 million (3.25 months' regular pay) as a summer bonus, and JPY
0.973 million (3.40 months' regular pay) a$ a year-end bonus.
• Labourisation in India
Worker owned firms are not as common in India as in Europe. There have been several cases, in India, of
workers of sick companies forming cooperatives to save their jobs. Many of these cooperatives have an
impressive record of performance. Kamani Tubes in Bombay, New Central Jute Mills in West Bengal and Jaipur
Metals and Electricals in Rajasthan have all been working successfully. While there are also some cases of
failure, the general experience is positive. With the right leadership and financial support, workers have shown
that they can take over sinking firms and make them profitable.
Indian achievements regarding employee ownership are small compared to developments on many European
countries referred earlier. A feature of worker ownership in India is the indifference, and sometimes, even
hostility, of the trade unions. When the firm runs into problems, the natural response of trade unionists is to
demand nationalisation. While this was an effective strategy some years ago, the government now appears
unwilling to take over sick firms. The government has no clear policy on worker ownership. The CTUOs except
BMS have no faith in it. The indifference of unions and the government is mainly responsible for the present
condition in India.

• Labourisation in India - Cases of Success

> Kamani Tubes
Kamani Tubes is a worker owned company located in Bombay. Before that, the Kamanis, a well-
known business family owned it. This company, that makes brass rods and tubes for use in
refrigeration and sugar production was established in 1959. It was a leading firm till the middle of
A Tribute to the Legend _________________ ______ _______________________________ Page 28
1970s, controlling 60 percent of the market. By 1985, the trouble started due to misunderstanding
among the members of Kamani family and financial difficulties. Kamani family abandoned the factory,
as the quantum of loss was uncontrollable.
When the owners abandoned, the independent union consisting 600 workers approached banks,
financial institutions and the state government to help revival. None of them responded positively. The
union then formed a cooperative to take over the firm. Claiming that workers could raise the share
capital from their provident fund, wage arrears and loans, the union filed a civil petition in the
Supreme Court. The court asked the Board for Industrial and Financial Reconstruction (BIFR) to
examine the union's proposal. The BIFR gave a favourable report, but by now the Kamanis had
returned to claim the company. In spite of the legal hurdles they created, the Supreme Court upheld
the workers' action. By the end of 1988 the shares were transferred to the cooperative In addition to
workers' contribution, the state government sanctioned a sizeable grant.
Since revival, the company has made good progress. Production, wages and profit have gone up. The
worker owned company pays annually around Rs.3 crore as excise duty. A Thus reviving the company
has been beneficial to the government too.
^ Cooperative of Slag-Pickers
The Tata Iron and Steel Company in Jamshedpur dumps its slag in low-lying areas to level the land
and reclaim it for use. The slag contains bits of iron, which can be collected and sold as scrap. At one
time, the job was given to contractors who employed slag pickers at miserable wages.
In 1979, the State Government formed a cooperative of slag-pickers, with the sub-divisional officer as
the chairman. The cooperative was given the monopoly to pick slag. In the very first year the
cooperative achieved a turnover of Rs.3 crore. This staggering amount was beyond anybody's
expectations. Wages have gone up substantially. The cooperative has taken up lot of welfare work
with its own funds. It continues to run smoothly.
Cooperatives of Iron Ore Miners
The Open Cast Iron Ore mines of Dalit - Rajhera in Madhya Pradesh also have successful cooperatives.
These mines supply iron ore to the Bhilai Steel Plant. About 7500 workers organised in seven
cooperatives are engaged in this task. Most of the workers have moved from the nearby Bailadilla
mines, which have been running out of ore. The government has encouraged the formation of
cooperatives to rehabilitate these displaced workers. The cooperatives have been running
successfully in spite of competition from contractors who also operate in this area. It has generated
handsome surpluses for distribution among members and funding welfare facilities. The best free
primary school in the town is run by this cooperative.
Although the cooperatives have shown that they can operate successfully, there is not enough support
for them from the trade unions. A trade union well known for its militahcy has organised the contract
labourers in this area. The members of the cooperative are also members of this union. Instead of
encouraging the formation of more cooperatives, the union has been demanding that the Bhilai Steel
Plant should take over all the mines in the area, including those managed by workers.
• Labourisation of New Central Jute Mill: An Outstanding Experiment of BMS
New Central Jute Mill (NCJM) is a large unit having a work force of 8000 at present. There are 12 unions in
the mill but surprisingly all these unions got together to labourise the sick company. The initiative was taken
by BMS. The company has been running well despite there being a slump in the jute industry. It has
modernised its A machinery and has diversified its products. It is concentrating on the manufacture of
enhanced quality products, which have a good market abroad. The success of this venture shows that
workers' initiatives can overcome the problems faced by traditional industries. While other jute mills are
languishing, NCJM has improved its production and the quality of its products.34 NCJM stands as a model
worker owned company and gldrifies the achievements of BMS.
A Tribute to the Legend__________________________________________________________________ Page 29
The NCJM was incorporated in 1915. It is a large jute mill situated at Budge-Budge in South Choubeez
Parganas District of West Bengal having 810 Hessian and 452 sacking looms besides 26 other looms and 189
spinning frames. In 1955 two other jute mills viz., Albion Jute mill and Lothian Jute mill were amalgamated
with the NCJM. In 1974-75 the company set up its own Machinery Manufacturing Division inside its own
premises. The company employed about 9735 persons in Jute Division and 342 persons in Machinery
Manufacturing Division on permanent basis besides temporary workers. The total number would be about
13,000.
In September 1982, the company approached Industrial Reconstruction Bank of India (IRBI) for financial
assistance for its modernisation - cum - renovation scheme at a cost of Rs. 244 lakh. It was agreed that
promoters would contribute Rs. 49 lakh and different financial institutions such as IRBI, INDUSTRIAL
DEVELOPMENT BANK of India (IDBI), Industrial Finance Corporation of India (IFCI), and Industrial Credit and
Investment Corporation of India (ICICI) would share remaining Rs. 195 lakh. The IRBI disbursed a sum of Rs.
64 lakh against its commitment of Rs. 95 lakh against first mortgage debentures and personal guarantee of
Shri A. K. Jain (Promoter) but other financial institutions cancelled their share on one or another plea.
Gradually promoters became indifferent in investing further money in the company and as a result due to fund
constraint and for some other reasons the company started becoming sick and as such it had to face lock out
for four times during 1982-87. Repeated lockouts, reluctant promoter to inject money and continued losses of
the company made such a sombre situation that almost all concerns of the mills became hopeless. The
suffering of workers increased and most of them faced starvation.
The workers approached the left front communist led State government several rimes and requested to
nationalise the mill. The government remained a passive onlooker. There are 12 unions of workers and 2
unions of Head office staff. All the unions, except BMS, belonging to different political parties tried their best
for re-opening of the mills through their political leaders but the Government at the centre and the State
government of West Bengal expressed their inability to do anything. The promoters, management and
government had no solution.
PRODUCTIVITY__________________________________ __________________________________

Productivity consciousness has acquired worldwide momentum. Higher productivity is necessary for the
survival of any nation. It stands for proper utilisation of available resources to achieve the best results with
minimum cost. Improvement in productivity is the only answer to the problems in the industrial sphere and it
is the only path to national prosperity. In India it assumes special significance owing to the resource gap. In
order to overcome the hurdle of shortfall in resources, stepping up of productivity is a must.
During the last 40 years productivity measurement has emerged as a distinct and separate branch of study in
management. A number of studies employing highly sophisticated mathematical and statistical techniques and
tools of analysis have been conducted to measure productivity. Specialised agencies of the United Nations
(UN) like the International Labour Organisation (ILO), affiliated agencies of regional organisation like
European Association of National Productivity Centres (EANPC) of the Organisation for Economic Cooperation
and Development (OECD) have been published comprehensive, detailed and elaborate manuals explaining
the concepts, methodologies, data requirements etc. for the measurement of plant level and overall
measurement of productivity of various factors and inputs. Regional, national and local productivity
organisations / associations / agencies / councils wereorganised and established to stimulate productivity
consciousness. In India the National Productivity Council (NPC) was established in 1958. The Asian
Productivity Organisation (APO) with headquarters in Tokyo was established in 1961 and all countries who are
members of APO established national and local productivity councils-centres / bureaus in their respective
countries.
• Concepts of Productivity
Frederick W. Taylor in his 'Task Study" said, "Human work Can be made infinitely more productive not by
'working harder' but by "working smarter'.
> Productivity means the economic yield from:
A Tribute to the Legend_____________________________________________________ ____________ Page 30
^ Each factor of production (land, labour, capital and organisation) Each input (raw materials, fuels, time
and knowledge)
^ An overall yield of the joint factors and resources enumerated above in combination.
Productivity denotes the efficiency with which the various inputs are converted into goods and services.
However, it is a multi-faceted concept; no single definition can fully describe it. Technically, it signifies the
ratio between the input and output. Productivity is said to be high when more output is derived from the same
input, or the same output is obtained from a less input.
It is well understood as the ratio of output to input with respect to given resources.
When more is produced with the same expenditure of resources it may be termed as effectiveness; when the
same amount is produced at less cost it may be termed as efficiency. The word productivity is broad enough
to cover both.
It should be recognised that the long-term productivity improvements can be achieved by the human factor
through positive and innovative attitudes. In this sense productivity is an attitude of mind' which is intolerant
of waste of every kind and in any form.
Productivity does not refer merely to work systems but to the development of right attitudes and a strong
concern for efficiency.
Efficiency, maximum output, economy, quality, elimination of waste and satisfaction of human beings through
increased employment, income and better standard of living are some of the objectives of productivity
movement in our country or for that purpose in any other country.
There are several concepts of productivity. Two of them are of relevance here, labour productivity and total
factor productivity. Labour productivity is the ratio of the output produced by a firm, industry or nation to the
number of worker-hours employed in producing this output.
Total factor productivity is the ratio of the output to the total input needed for its production, including not
only worker-hours and capital, but also any other input that might be involved. This might be the investment
made in human beings to raise the quality of labour or that made to improve productive knowledge through
research and development, or by the introduction of organisational, managerial and social innovations.
Total factor productivity is clearly a more accurate indicator of the economic efficiency of a firm, industry or
nation than labour productivity. However, mainly because of the difficulties involved in quantifying various
intangible inputs to total factor productivity, labour productivity is far more widely used. It is important to bear
in mind that labour productivity, is affected not only by capital input, but also by other factors, which affect
the efficient use of both capital and hours of work. These other factors consist not only of investment for
education, training, research and development, but also of non quantifiable factors such as the labour
relations climate and worker and management attitudes towards productive efficiency and competitiveness.
• Productivity and Production
The term productivity must not be confused with production. Productivity is a ratio while production relates to
a volume. Increased production does not necessarily mean increase in productivity. If the input of resources
goes up in direct proportion to the increase in output, the productivity will remain the same. And if input
increases by a greater percentage than output, higher production will be achieved at the expense of a
reduction in productivity.
• International Perspective
Table 51 shows labour productivity in select Asian countries in 1990. The per capita GDP of Japan was the
highest with US $ 28,875. Industrial harmony has played a decisive role in the miraculous economic
development of Japan. A nation which was almost totally devastated in the last world war and which is almost
devoid of important natural resources, with exception of water, is now dominating the world economy. The
extent of Japan's prosperity will be clear from the following facts. The world's ten largest banks are now all
Japanese banks. Japan is now financing nearly one third of the USA government's budget deficit. India's per
A Tribute to the Legend_________________________________ ________________________________ Page 31
capita GDP was US $ 848 with an annual growth rate of 2.87 percent, which is lower than all other Asian
countries except Bangladesh It is a matter of serious concern. Though India is the third largest in the category
of technically qualified persons in the world with Indians commanding premium in most countries the world
over, it is not so in terms of the products they make or the services they render 17 Being at one time, the
second most industrialised nation in Asia, India has now been relegated to the bottom of top ten.
• Labour Productivity in Indian Economy
Labour productivity in agriculture has gone up from Rs. 2,305 in 1950-51 to only Rs.3,157 in 1989-90. Labour
productivity in agriculture was the lowest while the mining, manufacturing and service sector seem to have
registered significantly higher growth rate.
India has a paradox of having cheap labour with high labour cost due to low productivity levels. This offsets
other cost effective measures. Some of the reasons for low productivity are: lower skill levels, obsolete
technology, loss of man days on account of industrial unrest and absence of proper work culture.
• Productivity Movement in India
About the progress of productivity movement in India, BMS has two pertinent observations to make. Firstly it
is its serious contention that the managements in both public and private sector have not yet taken up the
productivity movement seriously. The top executives and senior officers have not yet given their whole
hearted backing to ideas on productivity and the businessmen and politicians who own or control the industrial
activity have almost no grounding in the subject. India has the third largest scientific community in the world.
In spite of huge expenditure on Research and Development (R&D) in India, its impact on economic growth is
negligible. It has not contributed either to an improvement in quality of product or reduction in cost and
prices.
Secondly too much emphasis is given for labour productivity ignoring productivity of land and capital. The
productivity of labour is a function that may be useful in distribution of wealth. But under the Indian
conditions, the productivity of land and capital is most urgent since it can influence the growth of national
income at maximum speed. Of these two again the productivity of capital is very crucial, since capital is very
scarce in India.
• Viewpoint of BMS on adoption of technologies/ automation / Computerisation

The BMS again, was the first labour organisation, which brought home to the workers mind the fact that the
problem of technology was of vital concern to them as well as to the country. It opposed the revival of the
bullock-cart economy as well as wholesale transplantation of western technology.
BMS stands for the selective use of technologies/ automation / Computerisation. For instance, in all such
spheres of defence activities, where computerisation makes a difference between victory or defeat and heavy
loss, it is justified. Similarly computers will make land a more consistent and bountiful producer, by designing
irrigation systems, speeding up crop forecasting, controlling the rotation, scheduling of planting and helping
weather forecasting. BMS urges that such a selective and prudent use of computers will increase the national
income and output and allow economy to give higher real wages to workers.
The World Bank's latest report evaluates India as one of the poor countries. More than 30 percent of Indian
population remain below poverty line and number of unemployed in the country is swelling to perhaps
unfathomable level. The applicants on live registers of Employment Exchanges were 36.29 million in January
1994. The number has gone up to 36.73 million in January 1995. Over 40 percent of the educated are
unemployed in India. To the extent to which the employment opportunities are curtailed owing to the process
of avoidable computerisation, the burden of supporting the army of unemployed increases. When we think in
terms of the frustration of the unemployed younger generation of India, the price to pay for computerisation
appears to be very heavy.

BMS emphasises that India has to adopt a technology which can provide employment to all those who are
willing to be employed. Every country has to adopt such technique of production, as it would permit it to make
A Tribute to the Legend__________________________________________________________________Page 32
the maximum use of its abundant factors and economise the use of scarce ones. India has an abundant
supply of labour; hence it has to go in for labour intensive and low capital investment techniques wherever
possible without loss of efficiency. The developed western countries with an acute shortage of labour and also
high cost of labour can afford to go in for computerisation even in non-essential sectors, but India cannot.
• Recommendations of BMS in introducing productivity Schemes
In introducing all schemes relating to productivity, such as, system of payment by results, individual and
group incentive schemes, norms of staffing and workload, changes in organisation and methods,
rationalisation, mechanisation etc., the following considerations should be respected:
i) All such schemes should be introduced as a result of agreement with concerned unions.
ii) Each such scheme must provide for a minimum of a fallback wage, which has no relation to productivity.
iii) Complete safeguards must be provided for protection against fatigue and undue speed up.
iv) The management must carry out a continuous appraisal of factors affecting productivity, such as
methods and work-study, continuous supply of good material, quality of tools, machine-breakdowns, lay­
out, quality control, physical, perceptual and mental loads, environmental factors, such as, lighting,
ventilation, temperature, noise, cleanliness etc. and share these studies with labour and make all
revisions only on the basis of joint studies and agreement.
v) All measurements of work should be done jointly and must provide for factors like needs of safety, rest
and relaxation, interruptions, delays, etc. The same should apply to valuation of physical product where
such valuation forms the basis of incentive payments.
Indices of land productivity, capital productivity and labour productivity should be separately compiled and
used respectively for planning, rate of economic growth and distribution of income.
The gains of productivity should be distributed between shareholders, workers, consumers and plough-back
effect. The NPC has evolved a formula to allocate the gains of productivity between the shareholders and
others. Shri V. M. Dandekar, Former Director, Gokhale School of Economics and Politics, Pune has amended
the NPC formula to the effect that the plough back of 30 percent should be given to workers in the form of
shares and make them co-owners. The two formulae stand as under:

Head of Allocation of Productivity Gains NPC Formula Dandekar's Formula

Reduction in price 20% 20%
To Labour 30% 30%
Plough back 30% —
Plough back (shares to workers) - 30%
To Shareholders 20% 20%
Both the formulae require further technical working such as mode of determining the gains of productivity and
basis of allocation of gains to different categories. Labourisation in the form of employee share ownership will
give a strong incentive to the workers to increase productivity.
• Role of Trade Unions in the Productivity Improvement
The trade unions should not look upon their role as one of permanent opposition to management. Ultimately,
the interests of workers e.g., wages, welfare facilities and security of employment depend upon the prosperity
of the nation and the firm. That which hampers productivity ultimately harms the workers themselves.
Therefore, a strong trade union should presuppose an efficient and affluent firm. The trade unions should
attach great importance to harmony, efficiency and order. The unions should be aware of the fact that
ultimately the prosperity of India depends upon her productivity and her competitive position in the world
A Tribute to the Legend_________ ’ ___________________________________________________ Page 33
market. Therefore, the unions should accept the need for smart work, higher productivity, pride in skill and
high quality of goods.
The BMS has not ruled out employing the weapon of strike for securing the legitimate rights of the employees.
However, in line with its basic concept of industrial family, it has always believed that this weapon should be
used as the very last resort. BMS never encourages participation in any politically inspired strike. BMS also
views that the trade unions will have to be specially careful that no agitation is ever planned which will result
in work slow tactics, because it spoils the habits of discipline in a firm and ultimately it causes damage to
productivity.
• Work Culture of BMS Workers
Work culture it is, when the crude work of subhuman level is refined in performance and ennobled in purpose.
The 'how' and 'what for' of work determine the work culture of people. Thus the two aspects of work culture
are efficiency in action and nobility of purpose. The crudeness on one hand and crookedness along with self-
centeredness on the other hand will have to be overcome to be cultured at work. The former can be
eliminated through training and practice and the latter through love and service. Then work is worship.
The concept of Rights Vs Duties requires to be analysed from Indian context. While the westerners clamour
for rights, Indian culture insists that when all the sections of society perform their duties perfectly they also
get their rights. For e.g. a mother does her duty towards her children, that is the right of the children. The
children on their part pay their respects and help their mother. Their duty ensures (he rights of the mother.
When a teacher discharges his duties properly, students get their rights fulfilled. Similarly, when the students
behave, as they should the teachers get their rights fulfilled. An employer's duty protects the rights of the
employees. The duty of the employees protects the rights of the employer. Thus concept of duties and rights
is complementary to each other. Social unrest, exploitation and anarchy set in when people demand their
rights and do not discharge their responsibilities. The concept of work culture in India must be viewed from
this angle. If every one carries out the duties assigned to him in the most perfect manner, the society will be
prosperous and peaceful.
• Improving Work Culture
BMS observes that "all patriotic forces wherever they be, in the Government, in bureaucracy, in top and
middle management, supervisors, staff and workmen should bring about a responsible change in their work
style which should be the broader objective of achieving excellence in production, quality, productivity,
elimination of all sorts of wastes, bottlenecks in procedures and maintaining strict fiscal discipline and cordial
relations. In any case, the workers should, if the situation demands, exhibit exemplary presence of mind and
become model to other sections in improving the work culture in the interest of the industry and the nation”.
The BMS cadre and rank and file have risen to the new challenges in this regard.
In India, the relationship of labour and their union has degenerated into that of a patient and his physician.
The workers would contact the union only as and when relief in any dispute was required. The longer the
dispute continues, the longer would be the relationship. But the worker would forget the union as soon as his
problem was over. The situation has come to such a pass that the period of protecting the workmen or
winning new rights for them is over. It is exactly now the attention of the workers has to be drawn to the
other side of the coin, not just to the rights but also to the responsibilities.
They have to be made aware not only about the interest of their union or family, but also of the society,
industry and nation. With the winds of change, while the industry faces global competition from the giant
multinationals, the difficult duty of awakening the workmen to the needs of productivity and quality must be
discharged by the trade unions.
The trade unions should serve the national interest by following the precepts of 'Indiscipline be damned' and
'no clemency for inefficiency’. The labour has a right to be happy after his tears are wiped; but he should not
become selfish or unruly. Even though it appears to be bitter at first the truth has to be told to the workers
that not only their own good, but also the interest of the industry and the nation has to be given a prior