New Delhi: The Supreme Court of India has expressed concern over the role of trade unions in the country’s industrial slowdown, observing that union activities have contributed significantly to the closure of several industrial units nationwide. Chief Justice Suryakant made the remarks while hearing a public interest litigation (PIL) filed by the Women Workers’ Association and other trade unions seeking welfare measures for domestic workers.
During the hearing, the Chief Justice noted that aggressive union organizing, often without productive engagement, has hampered industrial growth. “Many traditional industries have been shut down due to the disruptive activities of certain unions,” he said, underlining that while protecting workers’ rights is essential, methods that undermine industrial development are counterproductive. He further emphasized that exploitation of workers remains a persistent problem and called on unions to prioritize reforms like skill development and awareness of individual rights through constructive, rather than destructive, approaches.
The PIL sought measures such as a mandatory minimum wage for domestic workers, along with other welfare interventions. Senior advocate Raju Ramachandran, representing the petitioners, highlighted examples from countries like Singapore, where domestic workers’ registration, guaranteed wages, and weekly rest days are standard practices.
While acknowledging the intent behind such proposals, the Chief Justice cautioned against unintended consequences. He noted that fixing a minimum wage without factoring in employment opportunities could deter families from hiring domestic workers, potentially worsening their economic conditions. He also flagged the risks posed by agency-mediated recruitment, which, he said, undermines traditional trust between employers and domestic workers, sometimes resulting in significant pay disparities. Citing the Supreme Court’s own experience, he mentioned that workers hired through agencies received only Rs 19,000 while the institution spent Rs 40,000 per worker.
The Chief Justice warned that implementing minimum wages under union pressure could trigger widespread legal disputes involving families and households. He concluded that while the suggestions in the petition merit legislative consideration, they fall outside the judiciary’s jurisdiction. Accordingly, the Supreme Court dismissed the petition without addressing the specific reliefs sought, emphasizing that policy reforms for worker welfare should be addressed through appropriate legislative channels.
This landmark observation from the apex court underscores a growing debate on balancing worker protection with industrial growth, highlighting the challenges posed by union activism in India’s manufacturing and domestic employment sectors.