New Labour Codes Criticized for Threatening Workers’ Rights and Enabling Exploitation

New Labour Codes Criticized for Threatening Workers’ Rights and Enabling Exploitation

New Delhi: The Workers India Federation (WIF), alongside multiple Unorganized Workers’ Forums, has strongly condemned the recently implemented Labour Codes, warning that they undermine trade union rights, weaken social security protections for the majority of India’s workforce, and allow establishments to close abruptly without prior government oversight. The Federation has called on the government to revisit these Codes through open consultation and to align labour reforms with constitutional safeguards and international labour standards.

Affiliated with the Confederation of Unorganized Workers’ Associations, WIF asserted that the new reforms risk dismantling fundamental worker protections under the guise of “modernization.” In a statement released on Monday, Fr. George Thomas Nirappukalayil, Director of WIF, described the Codes as “products of a growing crony-capitalist climate,” shifting power disproportionately in favour of employers. He stressed that labour legislation was originally designed to protect workers from exploitation, uphold their dignity, and secure their rights, while the new Codes, he argued, dilute these safeguards and weaken the collective voice of workers.

WIF highlighted deep concerns over what it called a significant erosion of workers’ rights to organize and form trade unions, warning that curbs on union activity could undermine labour democracy over the long term. Fr. George Thomas stated that restricting collective organization is a direct threat to transparency and bargaining power, particularly in smaller enterprises, where exploitation could increase unchecked.

Another critical issue raised by WIF is the failure of the Labour Codes to address social security for the unorganized workforce, which constitutes 93% of India’s total employment. The Federation pointed out the absence of clear mechanisms for mobilizing social security funds or guaranteeing coverage for millions of unorganized workers, noting that even the draft National Employment Policy falls short in providing meaningful solutions.

Additionally, WIF criticized the provision allowing companies with up to 300 employees to shut down without government approval, describing it as an anti-worker measure that could destabilize jobs, encourage sudden closures, and leave workers vulnerable. Fr. George Thomas warned that such unchecked powers for employers would intensify job insecurity and exploitation.

Reaffirming its position, WIF stated that labour reforms must uphold the constitutional principles of dignity, equality, and social justice. The Federation called for genuine consultations with trade unions, labour experts, and civil society representatives to ensure policies meet international standards. “The future of India’s workforce cannot be sacrificed for short-term economic gains. Labour reforms must reinforce protections, not erode them,” Fr. George Thomas emphasized, underscoring that workers’ voices should be central in shaping policy.

WIF has therefore urged the Government of India to promptly review the Labour Codes and take immediate steps to safeguard the rights, security, and dignity of millions of workers nationwide.


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