The Ahmedabad Mill Strike of February–March 1918 stands as a watershed event in the evolution of the Indian labor movement. By the early 20th century, Ahmedabad in Gujarat had emerged as a major textile manufacturing center, often referred to as the “Manchester of the East.” The industrial workforce consisted largely of local and migrant laborers working under grueling conditions. Unlike the contemporary labor movements in Bombay or Bengal, which were increasingly influenced by radical socialist ideologies and political alignments, the Ahmedabad crisis introduced a unique model of labor dispute resolution based on ethical arbitration, moral pressure, and non-violent resistance.
Economic Triggers and the Plague Bonus Dispute
The immediate cause of the conflict was economic distress aggravated by the plague epidemic of 1917 and the financial pressures of World War I.
The Plague Bonus Enforcement
During the severe outbreak of bubonic plague in Ahmedabad in 1917, mill owners introduced a “Plague Bonus” to prevent workers from fleeing to the countryside. This bonus was substantial, sometimes reaching up to 75% of a worker’s basic wage, and it helped sustain the workers amidst soaring wartime inflation.
The Sudden Withdrawal and Inflation Shock
By early 1918, as the epidemic subsided, the mill owners decided to completely withdraw the Plague Bonus. This decision coincided with a period where the prices of essential commodities like food grains, cloth, and kerosene had doubled due to World War I. The workers demanded a 50% “Dearness Allowance” (compensatory allowance for inflation) to cushion the loss of the bonus. The mill owners, organized under the Ahmedabad Millowners’ Association, refused this demand and offered only a 20% bonus, threatening to dismiss any worker who did not accept.
Key Figures and Interlocking Relationships
The Ahmedabad Mill Strike was unique due to the close personal, social, and financial relationships that linked the leadership of both the striking workers and the mill owners.
Mahatma Gandhi
Having returned from South Africa in 1915, Gandhi was invited by the mill owners and local leaders to intervene. He used this dispute to apply his philosophy of Satyagraha (truth-force) and Ahimsā (non-violence) to an industrial labor conflict for the first time in India.
Anasuya Sarabhai
A pioneering social worker and labor activist who had returned from England influenced by the Fabian Society. She championed the cause of the mill workers, operating from her social welfare center, the Majur Mitra Mandal. She served as the primary link between the workers and Gandhi.
Ambalal Sarabhai
The president of the Ahmedabad Millowners’ Association and a prominent industrialist. Crucially, he was the brother of Anasuya Sarabhai and a major financial backer of Gandhi’s Sabarmati Ashram. This created a unique dynamic where the leader of the employers and the leader of the workers belonged to the same household, and both shared a deep respect for Gandhi.
The Dynamics of the Strike and Gandhi’s First Hunger Strike
When negotiations broke down, the mill owners declared a lockout on February 22, 1918. Gandhi assumed leadership of the workers and initiated a structured agitation.
The 35% Compromise Formula
After studying the financial health of the mills and the prevailing cost of living, Gandhi concluded that the workers’ demand for 50% was slightly high, while the owners’ offer of 20% was too low. He proposed a mathematically calculated compromise demand of a 35% wage increase. He made the workers take a solemn pledge never to resort to violence, never to molest strike-breakers, and never to yield until their 35% demand was met.
The Weapon of the Hunger Strike
By mid-March, after nearly three weeks of lockout, the workers’ financial reserves dried up, and signs of despair and desertion began to show. Some workers began to criticize Gandhi, alleging that he lived comfortably while they starved. To restore morale, preserve the sanctity of the pledge, and exert moral pressure on the mill owners, Gandhi launched his first-ever “Fast Unto Death” in an industrial dispute on March 15, 1918.
Settlement and Resolution
The fast shook both the mill owners and the wider community. Ambalal Sarabhai and the other mill owners sought a compromise to ensure Gandhi’s survival. On the third day of the fast, an agreement was reached. The dispute was referred to an independent arbitration tribunal.
Comparative Overview of the Resolution Metrics
The final settlement utilized a phased adjustment mechanism to meet the mathematically derived 35% increase demanded by Gandhi.
| Day / Phase of Settlement | Wage Increase Percentage Allotted | Operational Rationale |
| First Day of Resumption | 35% Increase | Implemented to celebrate the successful resolution and honor the workers’ pledge. |
| Second Day of Resumption | 20% Increase | Matched the mill owners’ original maximum offer during the interim period. |
| Interim Period (Till Arbitration) | 27.5% Increase | The average of the two positions (20% and 35%), paid while the tribunal reviewed the case. |
| Final Tribunal Award | 35% Permanent Increase | The permanent wage hike ordered by the arbitrator, confirming Gandhi’s original calculation. |
Institutional Legacy: The Majoor Mahajan Sangh
The successful resolution of the strike led directly to the creation of a permanent institutional framework for industrial peace in Ahmedabad.
Foundation of the Textile Labour Association (1920)
In 1920, Anasuya Sarabhai and Mahatma Gandhi formally established the Majoor Mahajan Sangh (also known as the Ahmedabad Textile Labour Association or TLA). This association was built upon unique organizational principles:
- The Philosophy of Trusteeship: Capitalists were viewed not as natural enemies of labor, but as trustees of the wealth generated by society. It rejected the Left-wing concept of inevitable class war and permanent revolution.
- Mandatory Arbitration: The constitution of the GKU made it mandatory that all future industrial disputes be settled through mutual discussion and independent arbitration, completely outlawing sudden wildcat strikes.
- Welfare-Centric Unionism: The TLA focused heavily on internal welfare, using union funds to run night schools, medical dispensaries, cooperative banks, and vocational training centers for workers and their families.
Historical Trivia for Civil Services Aspirants
Chronological Position in Gandhi’s Early Movements
The Ahmedabad Mill Strike was the second of Gandhi’s three localized Satyagrahas after returning to India. It took place immediately after the Champaran Satyagraha (1917) and concurrently with the Kheda Peasant Satyagraha (March–May 1918).
Use of Leaflets as Ideological Tools
During the strike, Gandhi issued 17 successive bulletins or leaflets to the workers. These leaflets did not contain political slogans; instead, they focused on moral conduct, cleanliness, avoiding gambling, and maintaining dignity during unemployment.
The Arbitrator’s Identity
The final arbitration board that awarded the 35% increase included prominent legal and public figures, with Justice Anandshankar Dhruva playing a key role in the final adjudication.
Divergence from the Mainstream Left Movement
While the rest of India’s labor landscape saw the rise of the All India Trade Union Congress (AITUC) in 1920 under socialist and communist influence, the Majoor Mahajan Sangh chose to remain independent of AITUC, maintaining its distinct non-Marxist, class-collaborationist identity.
Last Modified: June 13, 2026