Union Leaders Must Focus On Workers’ Welfare, Not Political Issues

The May 20 nationwide strike called by central trade unions is rather unfortunate. The proposed strike is against the four labour codes and the privatisation of RINL-Visakhapatnam Steel Plant. This is in contrast to the restraint and judiciousness that the Centre has shown in the implementation of the four codes that it brought in five years ago. The government has yet to notify the Code on Social Security 2020, the Occupational Safety, Health and Working Conditions Code 2020, the Industrial Relations Code 2020, and the Code on Wages 2019.

The government has reportedly made it clear that there is no urgency to notify the four codes as most states and Union Territories (UTs) have already made the necessary changes in their respective state laws. That the extant labour regime has become outdated is common knowledge. For instance, it prohibits women from working night shifts. Other reforms introduced at the state level include implementation of fixed-term employment, compounding of offences, an extension of permissible overtime hours to 125 hours per quarter, and raising thresholds for coverage under laws like the Factories Act and rules for layoffs and closures.

Since labour falls under the Concurrent List of the Constitution, both the Centre and states can legislate on the subject. Generally, Central laws take precedence unless a state law receives presidential assent. Consolidation of 29 labour-related Acts into four comprehensive labour codes was a major reform undertaken by the NDA government in 2019-20. The objective was to streamline the country’s complex labour laws to promote trade, ease business operations, reduce compliance burdens, decriminalise minor offences, enhance skill development, and improve dispute resolution mechanisms. However, labour unions remain unconvinced.

They argue that the new codes are heavily skewed in favour of employers, stripping workers of fundamental rights related to working conditions, wages, social security, unionisation, collective bargaining, and the right to strike. In March, various unions held a daylong strike opposing the codes, highlighting their fears that punitive measures against collective worker actions would now become harsher. Some states like West Bengal, Meghalaya, Nagaland, Sikkim, and the Andaman & Nicobar Islands are yet to finalise their draft rules and lag behind others in implementing the reforms.

Legal experts emphasise that while the Central government drafts and notifies model rules, state governments must create their own rules to fully operationalise the labour codes within their jurisdictions. Experts believe that these reforms aim to simplify regulatory compliance, improve workplace conditions, and extend essential benefits such as the EPF, Employees' Pension Scheme (EPS), and medical cover to workers across organised and unorganised sectors.

Trade union leaders should be more focused on the real issues related to workers rather than on ideological questions like privatization, which should be addressed by politicians. Union leaders, on their part, must strive to ensure that the workers affected by privatisation get a fair deal. Ultimately, it would be in the best interest of all stakeholders—the government, trade unions, and industries—to engage in constructive dialogue and arrive at an amicable solution. Only through consensus can the benefits of labour reform be realised for India's workforce and economy.