Labour codes pro-employer, anti-workers: Industrial Relations Code needs to change, say 10 trade unions

The other unions, however, have supported these laws, and termed them a landmark and progressive reform that replaces fragmented, outdated colonial-era labour laws with a unified, contemporary, transparent and worker-centric framework. A joint statement issued by 14 separate trade unions – lead by the Bhartiya Mazdoor Sangh—on November 22nd called the reforms a historic transition toward dignified labour governance, universalised social protection and a modern labour ecosystem aligned with the aspirations of 'Viksit Bharat' 2047.

Concerns of protesting unions

The November 21st statement was issued by the All India Trade Union Congress (AITUC), Indian National Trade Union Congress, Centre of Indian Trade Unions, All India United Trade Union Centre, Hind Mazdoor Sabha, All India Central Council of Trade Unions, Self-employed Women’s Association, Trade Union Coordination Centre, Labour Progressive Federation and United Trade Union Congress.

The TUCC, however, denied that it signed the statement. "We are not part of their group, we support the labour codes," TUCC’s President SP Tiwari told Moneycontrol.

"The Industrial Relations Code has now mandated factories over 300 workers to seek prior permission from government to close down or lay off workers. This threshold in earlier laws was 100. There are many factories, which employ less than 300 workers…inspections for them have reduced. How can this be pro-worker," a member of one of the 10-unions said, on condition of anonymity.

Under the IRC, 2020, only establishments with 300 or more workers will need this prior government permission. Establishments with between 1 and 299 workers have greater flexibility in adjusting their workforce without bureaucratic approval, provided they comply with the mandatory notice periods and compensation requirements.

The erstwhile Industrial Disputes Act, 1947, required an industrial establishment with 100 or more workers to take explicit, prior permission from the appropriate government (Central or State) to lay off, retrench, or close down.

"Also, earlier workers who are engaged in essential duties were mandated to give a 15-month notice and then sit on strike. Now all workers (essential and non-essential) have to give a 60-day notice before going on strike… this takes away the freedom to protest," a third member said.

"All the codes are aimed at ease of doing business for employers, not ease of life of workers," the person added.

The 10 unions in their statement have denounced the four labour codes, and have called the codes a "genocidal attacks on the lives and livelihoods of workers seeking to impose virtual slavery and snatching away every right and entitlements of the workers."

'Protesting unions are politically motivated'

A senior official from labour ministry have termed these protests "politically motivated".

"The 10 unions don’t want to look at the benefits that codes provide for workers. We have held numerous meetings with them, but they are unwilling to understand. They only want to speak against the labour codes, and have no concrete plan for labour reforms," the official said, adding that most of these unions are affiliated to opposition parties.

The AITUC is affiliated with the Communist Party of India (CPI), INTUC with the Congress. CITU is associated with CPI(M) and AIUTUC is the labour wing of Socialist Unity Centre of India (Communist).

TUCC is politically attached to the All India Forward Bloc and AICCTU is the trade union wing of CPI(ML). LPF is affiliated with the ruling Dravida Munnetra Kazhagam (DMK) in Tamil Nadu and UTUC to the Revolutionary Socialist Party.