New Delhi. Ten major central trade unions of India have demanded immediate withdrawal of the four new labor codes of the Central Government, terming them anti-worker and corporate friendly. These unions have announced a nationwide protest and strike on coming Wednesday. These unions, mostly associated with opposition parties, have been opposing these laws for the last five years. All four labor codes (Wage Code, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code) were passed by the Parliament in the year 2019-20 and are now gradually being implemented.
The government claims that with these codes, 29 complex labor laws of the British era have been combined into four simple codes, which will increase investment, generate employment and provide minimum wages, social security and better working conditions to the workers. But trade unions say that these laws are a betrayal to the workers. This has given companies free rein to fire employees without reason, increase shift duration and promote contract labour. The main changes include permission to extend the working day in factories to 12 hours, exemption for night shifts for women, increasing the limit of government permission for layoffs from 100 to 300 employees and more exemptions for small and medium companies than before. Business organizations are happy with these changes as they believe that old laws were holding the manufacturing sector back. The share of manufacturing in India’s four trillion dollar economy is still less than 20 percent.
However, not everyone is of the same opinion. The Association of Indian Entrepreneurs, an organization of small and medium entrepreneurs, has also expressed concern that the new rules will greatly increase their operating expenses and disrupt business in many sectors. They have asked for transition support and flexible implementation from the government. On the other hand, the Bharatiya Mazdoor Sangh (BMS) has openly supported these codes and asked the states to implement them soon after discussing some minor issues. The Labor Ministry has held a dozen meetings with unions since June 2024, but no consensus was reached. Now all the states will make their own rules and implement these codes. Trade unions say that if the government does not relent, Wednesday’s protests will be just the beginning.