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Why Tata Steel's 99-year-old trade union hasn't seen a strike since 1928

The Tata Workers' Union has withstood violence -- two of its presidents were gunned down -- and the trimming of the company's workforce by half.

March 06, 2019 / 21:49 IST
     
     
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    For a trade union that owes its origin to a strike, Tata Steel's Tata Workers' Union has come a long way, 99 years to be precise. It is the only union in the country to have lasted so long.

    Ironically, the secret of its longevity - and again in contrast to its origin - would be its relative peacefulness when it comes to labour relations. The TWU, as the union is called, has not had a strike since 1928.

    Based in Tata Steel's Jamshedpur facility, TWU was founded in March 1920.

    "The secret to our longevity is our working style. We work together with the management and there is a trust factor. Sure, we have issues and demands, and sometimes it takes time to come to a decision, but the bottomline is trust," TWU President R Ravi Prasad told Moneycontrol. 

    A political history

    The TWU has a rich history, and stalwarts of the time, including Mahatma Gandhi and Subhash Chandra Bose, have had some association with it.

    Then known as Labour Association, the union was de-recognised by the management in 1922, in response to a strike for better service conditions. It was only after the intervention of Gandhi, who visited Jamshedpur in 1925, that the recognition was restored, and Bose was made the President.

    Its 1956 agreement with the management is known as the 'magna carta' of the working class, bringing better benefits, and also enabling workers' representation across the organisational structure.

    There has been some violence too. Two of its presidents - Abdul Bari in  1947 and VG Gopal in 1993 - were gunned down.

    Some of the most trying circumstances also included the massive restructuring that the company underwent under the helm of then managing director JJ Irani. From 78,000 in 1991, the workforce was brought down to about 40,000 over the next 10 years. There were differences, but no strikes despite the massive initiative.

    "The change is the secret of the company's health," said Prasad, who has spent 22 years in the company. He is equally unperturbed about talks of automation taking away jobs.

    "We have to train people and we have to adjust. Otherwise, it is not possible to survive. We want the company to be strong," said the union leader. Interestingly, TWU has had only 11 presidents in its near 100 years.

    Keeping politics out

    Another secret behind TWU's century-long run would be its arm's length distance from anything politics. This, despite the union being affiliated to Indian National Trade Union Congress, the trade union wing of Indian National Congress.

    "We are not political. We keep good relations with all political parties, but we keep a distance," says Prasad.

    On centenary celebrations, the union plans to release a book, hold a 'big event' that will have a leading political figure as the chief guest, and the annual lecture will be addressed by Tata Sons Chairman N Chandrasekaran.

    Prince Mathews Thomas
    Prince Mathews Thomas heads the corporate bureau of Moneycontrol. He has been covering the business world for 16 years, having worked in The Hindu Business Line, Forbes India, Dow Jones Newswires, The Economic Times, Business Standard and The Week. A Chevening scholar, Prince has also authored The Consolidators, a book on second generation entrepreneurs.
    first published: Mar 6, 2019 01:15 pm

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