Ten trade unions in India have criticized the government’s implementation of new labor codes, calling it a “misguided fraud perpetrated against the working people of the country”.
The coalition of unions, called the Joint Forum of Central Trade Unions, issued a statement late Friday night calling for nationwide protests on November 26.
What are the new labor codes?
Prime Minister Narendra Modi’s government implemented four labor codes that were approved by Parliament five years ago.
The codes that have become effective are the Code on Wages, the Industrial Relations Code, the Social Security Code and the Occupational Safety, Health and Working Conditions Code.
The government is trying to simplify some work rules related to British colonial rule, and is also considering easing conditions for investment.
It also says the reforms will improve worker safety.
“By modernizing labor rules, enhancing worker welfare and connecting the labor ecosystem with the evolving world of work, this historic step lays the foundation for a future-ready workforce and strong, resilient industries driving labor reforms,” the labor ministry said in a statement.
Businesses have long been demanding India to revise its labor rules, especially in the manufacturing sector, a key pillar of the South Asian country’s economy.
Meanwhile, Reuters news agency quoted the Association of Indian Entrepreneurs as saying that the new rules will significantly increase costs for small and medium-sized enterprises. The group called for transitional support from New Delhi.
Why are unions demanding more action?
Unions have strongly opposed the changes and have held several nationwide protests over the past five years.
While the new rules provide social security and minimum wage benefits, companies will also be able to hire and fire workers more easily.
“The Joint Platform of Central Trade Unions expresses its strong condemnation against the blatantly unilateral implementation of the anti-worker, pro-employer labor code from today,” the unions’ joint statement said.
The unions called for protest action on 26 November to “outrage working people across all sectors of India”.
Edited by: Sam Dusan Inayatullah