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Ten major trade unions in India have strongly criticized the government’s introduction of new labor laws, labeling the move as “deceptive fraud” aimed at workers. They are calling for the laws to be withdrawn before upcoming nationwide protests scheduled for Wednesday.
The government, led by Prime Minister Narendra Modi, enacted four labor codes that had previously been approved by Parliament five years ago. The reforms aim to modernize employment regulations, some of which date back to colonial times, and to encourage investment by easing certain restrictions. The authorities claim these adjustments bolster worker protections by providing social security and minimum wage benefits. However, they also grant companies greater ease in hiring and firing employees.
Unions have been fiercely opposed for years, organizing multiple nationwide demonstrations against the reforms. The Labour Ministry has yet to respond to a Reuters inquiry about union demands but notes that it has conducted over a dozen consultations with labor groups since June 2024, according to internal documents.
The new regulations permit longer factory shifts and night work for women workers, and they increase the employee threshold requiring prior approval for layoffs from 100 to 300 workers, giving employers more flexibility in managing their workforce.
Businesses, meanwhile, have voiced concerns that these labor reforms will raise operating costs significantly for small and medium-sized enterprises and cause disruptions across key industries. They have requested transitional support and more adaptable implementation strategies.
Not all unions oppose the changes. The Bharatiya Majdoor Sangh, a right-wing organization aligned with Modi’s party, has encouraged states to adopt the reforms after consultations on some of the codes. State governments are expected to develop their own rules aligned with the federal standards for wages, industrial relations, social security, and workplace safety.
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