Kerala trades in unions

THIRUVANANTHAPURAM: Forget global M&As. In Kerala, trade unions are learning the game of corporate takeover. Here, trade unionists buy and sell unions. Every deal, though clandestine, resembles an M&A.

While CITU, AITUC and other mammoths slowly build up their membership base, enterprising unionists look for quick ways: they buy small unions and merge them into one.

The price depends on the age and strength of the union. It could range from Rs 20,000 to Rs 1 lakh as in the case of Construction Workers’ Union, which was sold to a party leader last month. “The price is nothing compared to the cost of setting up a new union,” the leader said.

Being a trade unionist in Kerala has its advantages. The president of a state affiliate gets a position in the central leadership of the union. Plus, trade union leaders have one-third representation in workers’ welfare boards.

“These boards sanction pension funds, and medical benefits. At every talking table, the man with the biggest headcount has a say,” says additional labour commissioner Prakash S Oliver. There are over 15 welfare boards in the state, which accounts for 60% of the country’s unions.