Congress opposes the four new central labour codes
Source:The Hindu ↗
Why It Matters
The consolidation of central labour laws into four Labour Codes is a highly consequential structural reform aimed at improving the ease of doing business while attempting to secure worker welfare. The ongoing political and social resistance to these codes over concerns regarding collective bargaining, the right to strike, and union formation is a core component of both GS3 (Economic Growth and Employment) and GS2 (Social Justice and Governance).
Summary
Congress leader K. Muraleedharan has strongly criticised the Central government's four new Labour Codes, labelling them "anti-national" and hostile to workers' interests. He highlighted that the requirement of at least 10% worker membership to form an organisation undermines the fundamental right to unionise and disproportionately benefits factory owners. The new legislation, particularly the Industrial Relations Code of 2020, introduces significant structural changes: it recognises trade unions with 51% membership as 'Negotiating Unions' for collective bargaining and expands the definition of a 'strike' to include mass casual leave, making flash strikes much more difficult to execute.
Key Points
- The Central government introduced four new Labour Codes to consolidate and reform existing labour laws in India.
- Congress leader K. Muraleedharan termed these codes 'anti-national', expressing the party's refusal to support them.
- Critics argue the codes dilute worker rights by mandating that at least 10% of workers must join together to form a recognized trade union, which allegedly empowers factory management.
- The Industrial Relations Code, 2020 grants 'Negotiating Union' status only to trade unions with 51% or more membership to consolidate collective bargaining.
- The definition of 'strike' has been broadened to include mass casual leave, effectively criminalising spontaneous 'flash strikes' and restricting workers' ability to protest.
Important Terms
Labour Codes
A consolidation of 29 central labour laws into four comprehensive frameworks: Wages, Industrial Relations, Social Security, and Occupational Safety. They aim to simplify compliance and universalize worker benefits.
UPSC context
GS Paper III (Economy). Tests understanding of structural reforms to address labor market rigidities and formalization.
Industrial Relations Code, 2020
A code amalgamating the Trade Unions Act, Industrial Employment (Standing Orders) Act, and Industrial Disputes Act. It introduces stricter strike regulations and increases hiring/firing flexibility.
UPSC context
GS Paper II (Governance). Evaluates legislative changes affecting collective bargaining and industrial peace.
Negotiating Union
A registered trade union with at least 51% worker membership, recognized as the sole representative for collective bargaining. If no union meets this, a Negotiating Council is formed.
UPSC context
GS Paper III (Employment). Focuses on mechanisms for collective bargaining in a competitive economy.
Strike (under IRC 2020)
Under the 2020 Code, strike includes mass casual leave by 50% or more workers. It mandates a 14-day notice for strikes in all establishments.
UPSC context
GS Paper II (Rights). Tests the balance between the right to protest and industrial productivity.
Fixed-Term Employment
A provision allowing time-bound direct contracts with statutory benefits (gratuity/wages) proportional to permanent workers. It aims to reduce excessive contractualization and middleman exploitation.
UPSC context
GS Paper III (Employment). Examines strategies to formalize the workforce while maintaining business flexibility.
2nd National Commission on Labour
A commission (2002) that recommended grouping existing labour laws into broad functional codes, forming the policy basis for current reforms.
UPSC context
GS Paper III (Policy Framework). Essential for tracing the historical roots of economic reforms.
Trade Union Registration Threshold
The requirement that at least 10% of workers or 100 workers (whichever is less) must be members to register a trade union.
UPSC context
GS Paper II (Fundamental Rights). Relates to Article 19(1)(c) and freedom of association.
Prelims Trap
Under the new Labour Codes, a trade union requires 51% worker membership to be formed and registered.
51% is the threshold for 'Negotiating Union' status (sole bargaining rights). To simply register, a union only needs 10% or 100 workers (whichever is less).
Static Concepts Connected
Where does 'Labour' feature in the Constitution of India?
- Concurrent List: Both Parliament and State legislatures can make laws. It falls under Entry 22, 23, and 24 of the Concurrent List in the Seventh Schedule.
- Directive Principles: Articles 39, 41, 42, and 43 mandate the State to secure just working conditions, living wages, and worker participation in industrial management.
- Fundamental Rights: Article 19(1)(c) guarantees citizens the fundamental right to form associations or trade unions, subject to reasonable restrictions.
Is the right to strike a Fundamental Right under the Indian Constitution?
- Not a FR: The Supreme Court has repeatedly ruled that there is no fundamental or absolute legal right to strike under Article 19(1)(c).
- Statutory Right: Striking is a heavily regulated statutory right under industrial laws, subject to strict procedural constraints like mandatory prior notice periods.
- Union vs Strike: While the Constitution protects the freedom to form trade unions, it does not automatically extend this protection to an unbridled right to strike or halt production.
Cross-Topic Patterns
Labour Codes + Ease of Doing Business
The consolidation of 29 laws into 4 codes is frequently analyzed alongside Make in India and PLI schemes, aiming to attract global manufacturing by easing compliance and retrenchment norms.
Fundamental Rights vs Statutory Curbs
The tension between Article 19(1)(c) (freedom to form unions) and statutory curbs on 'strikes' parallels recent constitutional debates around the right to protest and public order.
Expect a multi-statement Prelims question testing exact numerical thresholds (10% vs 51%) and the constitutional status of the right to strike.
Linked PYQs · 2
Linked PYQs · 2
- 2024MainsGS3
Discuss the merits and demerits of the four 'Labour Codes' in the context of labour market reforms in India. What has been the progress so far in this regard?
- 2022MainsGS3
Economic growth in the recent past has been led by increase in labour productivity." Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.
