According to data from the Ministry of Labour, India currently has over 16,000 registered trade unions, of which only 12 are at the national level. This number has declined by 20 per cent over the past decade, even as the country's workforce has surpassed 50 crore. 

The Labour Bureau’s 2024 survey reveals that only seven per cent of Indian workers, approximately 3.5 crore, are employed in the organised sector. Additionally, trade union membership has declined by 35 per cent over the last 10 years. 83 per cent of the workforce is in the unorganised sector, where union influence is negligible. 

Read in Hindi: अप्रासंगिक हो चुके हैं दुनियाभर के श्रमिक संगठन...!

In the post-independence decades, unions achieved major milestones. 8-hour workday, Minimum wage laws, and workplace safety standards are the main achievements. However, the situation began to change after the 1991 liberalisation.

International Labour Organisation data shows a 60 per cent decline in strikes between 2000-2025, while union activities are restricted in over 75 per cent of private companies.

The rise of the gig economy has further complicated matters. Over 50 lakh delivery partners on platforms like Zomato and Swiggy, more than 25 lakh Ola/Uber drivers, and 95 per cent of these workers are not affiliated with any union. 

A former union leader states, "In today's economy, unions represent only five per cent of employees. We must reach gig workers, freelancers, and informal sector labourers."

Trade unions now face a clear choice—either adapt to the new economic era or gradually become irrelevant. The fight for workers' rights is no longer confined to factories but must extend to digital platforms and home-based workers. 

In a globalised, open economy, the significance of trade unions is increasingly questioned. Once the pioneers of revolutionary change, unions in India and elsewhere are losing their edge, struggling to redefine their identity in a free-market system where their traditional roles are constantly challenged. 

Privatisation, outsourcing, and a growing informal workforce raise a critical question. Are trade unions still the rallying points for transformative change, or have they been reduced to mere legal action committees?

In India, where most of the workforce—farmers, vendors, and gig workers—operates in the unorganised sector, the relevance of traditional unions is under scrutiny. Long queues in labour courts indicate a shift from direct action to prolonged legal battles. 

The reality is that in this open economy, workers are at the mercy of employers who can terminate them at will. Job security is a relic of the past. With government departments outsourcing services and the gig economy expanding, unions' bargaining power has significantly weakened. 

A former trade union activist questions, "Who is fighting whom? Unions as 'schools of revolution' are an outdated concept. The left finds itself sidelined in a system where economic classes are no longer as sharply divided as Marx envisioned." 

The rise of self-employed workers has further blurred exploitation lines, with many vendors naming government agencies and police, rather than traditional employers, as their primary oppressors. A factory worker remarks, "Our fight is not just against private employers but also against harassment by authorities."

The revolutionary zeal that once defined trade unions has given way to pragmatism. Socialist commentator Paras Nath Chaudhary observes, "Unions are losing their radical character, turning into legal negotiation committees with management." 

Strikes, once the hallmark of labour activism, are now rare. Union leaders often sit on management boards, tasked with ensuring industrial efficiency rather than disrupting it. 

Karl Marx envisioned unions as organising hubs for socialist revolution, uniting workers and sharpening class consciousness. Yet today, unions focus more on securing minor concessions than challenging capitalist structures. 

This shift reflects broader global economic changes. The classical union model—built on clear class divisions and collective bargaining—struggles to adapt to a fragmented workforce and shrinking job markets. Activist Ajay Kumar points to economic uncertainties: "When options are scarce, the working class lacks the strength to fight," discouraging collective action. 

As political entities, unions' influence has waned, with leaders preferring collaboration over confrontation. Until the 1990s, prolonged strikes were common. The 1974 railway strike, led by George Fernandes, forced Indira Gandhi to declare the Emergency in June 1975. But today, capitalism stands unchallenged. 

Journalist bodies remain silent. The American hire-and-fire system has taken root. Permanent jobs are dwindling. In this era of exploitation, injustice, and inequality, labour organisations must redefine their path. 

The question still remains, Can trade unions reinvent themselves, or will they fade into irrelevance?