India’s unions condemn new labor codes, plan nationwide protests

• Major Indian unions condemn the new labor codes as a “misleading fraud”.
• Unions demand withdrawal of labor laws ahead of protests.
• The Modi government is issuing four labor codes that were approved five years ago.

Ten major Indian unions condemned the government’s rollout of new labor codes on Friday, the biggest such overhaul in decades, as a “misleading fraud” against workers.

The unions, aligned with parties opposed to Prime Minister Narendra Modi, called in a statement late Friday for the laws to be withdrawn ahead of nationwide protests they plan to hold on Wednesday.

Modi’s government has implemented the four labor codes, approved by parliament five years ago, as it seeks to simplify labor rules, some of which date back to British colonial rule, and liberalize conditions for investment. He says the changes improve worker protections.

While the new rules offer social security and minimum wage benefits, they also allow companies to hire and fire workers more easily.

Unions have strongly opposed the changes, organizing multiple nationwide protests over the past five years.

The Labor Ministry did not immediately respond on Saturday to a Reuters request for comment on the union’s demands. The government has held more than a dozen consultations with unions since June 2024, an interior ministry document on labor codes shows.

The rules allow longer factory shifts and night work for women, while raising the threshold for businesses needing prior approval for layoffs to 300 workers from 100, giving companies more flexibility in managing the workforce.

Businesses have long criticized India’s labor rules as a burden on manufacturing, which contributes less than a fifth of the country’s nearly $4 trillion economy.

However, the Association of Indian Businessmen expressed concern that the new rules would significantly increase operating costs for small and medium-sized enterprises and disrupt business continuity in key sectors. He asked the government for transitional support and flexible implementation mechanisms.

Not all unions are opposed to reform. The right-wing Bharatiya Majdoor Sangh, aligned with Modi’s party, called on states to implement them after consultations on some of the codes.

Indian states are expected to create rules aligned with the new federal codes covering wages, labor relations, social security and occupational safety.