Ten major Indian trade unions have strongly condemned the government’s rollout of new labour codes, describing the move as a “deceptive fraud” against workers. The unions, aligned with opposition parties, have demanded the withdrawal of the laws ahead of nationwide protests planned for Wednesday.
The Centre of Indian Trade Unions organised protest marches on Saturday in Bhubaneswar, eastern India, where hundreds of workers gathered to burn copies of the new labour codes in a dramatic display of dissent.
The new legislation, implemented by Prime Minister Narendra Modi’s government, consolidates four labour codes approved by parliament over the past five years. The government says the overhaul simplifies decades-old work rules, some dating back to the British colonial era, while liberalising conditions to attract investment. Officials also highlight that the codes provide social security and minimum-wage benefits to workers.
However, critics argue the reforms primarily benefit employers. The new rules make it easier for companies to hire and fire staff, allow longer factory shifts, permit night work for women, and increase the threshold for firms requiring government approval for layoffs from 100 to 300 workers.
Trade unions have consistently opposed the changes, citing potential threats to job security and worker rights. Over the past five years, unions have organised multiple nationwide protests in response to draft versions of the codes.
Businesses’ reactions are mixed. While the labour reforms aim to streamline operations and enhance productivity, the Association of Indian Entrepreneurs has raised concerns that the new rules could increase costs for small and medium enterprises, urging the government to provide transitional support and flexible implementation. Conversely, the right-wing Bharatiya Mazdoor Sangh, allied with the ruling party, has endorsed the codes, recommending state-level implementation after consultations.
Indian states are now expected to draft rules aligning with the federal labour codes, covering wages, industrial relations, social security, and occupational safety. The unfolding debate highlights the ongoing tension between labour rights and economic liberalisation in India.
