New Delhi – A contentious debate has erupted in India following the implementation of four new labor codes by the ruling BJP-led government. These codes, covering wages, industrial relations, social security, and working conditions, have been met with fierce opposition from several trade unions, while receiving support from others, highlighting a deep divide within the Indian labor movement.
The codes, which replace 29 existing Central labor laws, were officially notified last Friday after being cleared by Parliament over five years ago. The government touts them as a modernization of labor regulations, designed to ease compliance burdens, expand social security coverage to include gig and platform workers, boost female labor force participation, and equalize the status of fixed-term and permanent employees. Prime Minister Narendra Modi has hailed the reforms as “one of the most comprehensive and progressive labor-oriented reforms since Independence.”
However, opposition parties, including the Congress and the Left, have vocally criticized the codes, questioning their effectiveness in ensuring justice for workers. Ten central trade unions (CTUs) have jointly condemned what they describe as the “blatantly unilateral implementation of anti-worker, pro-employer labor codes.” These unions, including the Indian National Trade Union Congress (INTUC), All India Trade Union Congress (AITUC), and All India United Trade Union Centre (AIUTUC), have announced a nationwide protest on November 26th.
The contentious labor codes were passed by Parliament in stages. The Code on Wages was approved in July-August 2019, followed by the Industrial Relations Code, Social Security Code, and Occupational Safety, Health and Working Conditions Code in September 2020. The passage of the latter three bills was marked by a boycott from opposition parties protesting the suspension of eight MPs. During the parliamentary debates, then Minister of State for Labour and Employment, Santosh Gangwar, asserted that the bills would be a “game changer” in labor welfare reforms, benefiting over 500 million organized and unorganized workers.
The protesting CTUs have raised concerns about changes related to hiring and firing practices, retrenchment procedures, fixed-term employment conditions, and limitations on the right to strike. They view these changes as detrimental to the rights and security of workers.
In contrast, the Bharatiya Majdoor Sangh (BMS), a trade union affiliated with the RSS, has welcomed the implementation of the codes, calling it a “significant milestone” towards a fairer and more empowered labor ecosystem in India.
The history of trade unions in India dates back to the late 19th century, spurred by the Indian Factories Act of 1881. While early strikes demonstrated the potential of collective action, the first formal union, the All India Trade Union Congress, was established in 1920. The Trade Union Act of 1926 aimed to regulate and monitor these burgeoning organizations.
Following India’s independence in 1947, trade unions experienced a period of rapid growth, particularly between the 1950s and 1970s, as the country adopted a socialist economic model. Unions wielded considerable influence, advocating for workers’ rights and organizing strikes, including the massive railway strike of 1974, which involved over 1.5 million workers.
However, the Indian trade union movement has faced a decline since the 1980s, attributed to factors such as changing business practices, the informalization of the labor market, economic reforms, and globalization. The collapse of the Bombay Textile Strike in 1982 is often cited as a pivotal moment in this decline.
The economic liberalization initiated in 1991 further weakened unions as the growth of the informal sector reduced their representation. Privatization and the increasing use of contractual and casual labor also contributed to the erosion of workers’ rights and the decline of formal sector unions.
Experts suggest that a gap exists between the intended goals of the new labor laws and their practical application. Professor Prabhu Mohapatra, a labor historian, believes that trade unions may push back by demanding the codes’ implementation in both letter and spirit. He notes that historically, there has been a discrepancy between labor laws on paper and their enforcement. Mohapatra anticipates challenges in implementing the codes’ promises related to social security, ease of doing business, and reducing industrial conflict.
Mohapatra emphasizes the need for trade unions to reinvent themselves and continue to advocate for workers’ rights at both the state and central government levels. He expects resistance to the codes on the ground, alongside ongoing pressure on the government.
