New Delhi. Ten major central trade unions in India have called the central government’s four new labor codes anti-labor and pro-corporate, demanding their immediate withdrawal. These unions, mostly affiliated with opposition parties, have announced a nationwide protest and strike this coming Wednesday. These unions, mostly affiliated with opposition parties, have been opposing these laws for the past five years. The four labor codes (the Wage Code, the Industrial Relations Code, the Social Security Code, and the Occupational Safety, Health and Working Conditions Code) were passed by Parliament in 2019-20 and are now gradually being implemented.
The government claims that these codes, which consolidate 29 complex labor laws from the British era into four simple codes, will boost investment, create jobs, and provide workers with minimum wages, social security, and better working conditions. However, trade unions say these laws are a betrayal of workers. They give companies free rein to fire employees without reason, increase shift durations, and promote contract labor. Key changes include allowing factories to work up to 12 hours, night shifts for women, raising the threshold for government approval for layoffs from 100 to 300 employees, and providing greater flexibility to small and medium-sized companies. Business organizations are pleased with these changes, believing that the old laws held the manufacturing sector back. Manufacturing still accounts for less than 20 percent of India’s $4 trillion economy.
However, not everyone is unanimous. The Association of Indian Entrepreneurs, an organization of small and medium-sized entrepreneurs, has also expressed concern that the new rules will significantly increase their operating costs and disrupt business in many sectors. They have sought transition support and flexible implementation from the government. On the other hand, the Bharatiya Mazdoor Sangh (BMS) has openly supported these codes and urged states to implement them quickly after discussing some minor issues. The Labor Ministry has held a dozen meetings with unions since June 2024, but no consensus has been reached. Now, all states will enact their own rules to implement these codes. Trade unions say that if the government doesn’t relent, Wednesday’s protests will be just the beginning.
