In Focus by The Hindu India’s new labour codes explained: Why are trade unions upset?
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Dec 17, 2025 Venkatesh B. Athreya, an economist and former head of department at Bharathidhasan University, dives into India's newly enacted labour codes that aim to consolidate 29 laws into four. He discusses the protests from trade unions claiming that these codes undermine worker rights and exclude many individuals from protections. Athreya traces the historical roots of these laws, critiques the neoliberal policies since 1991, and highlights the implications of reduced worker power and safety. He predicts potential mobilization as workers unite against these changes.
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Historical Shift From Labour Protection
- Post-independence labour protections were limited but meaningful due to political pressures and constitutional commitments.
- Neoliberal shifts since 1991 weakened these safeguards and deprioritised employment and social services.
1991 Reforms Reshaped Incentives
- The 1991 LPG turn introduced deregulation, privatisation and globalization as policy pillars that favoured capital.
- These policies increased reliance on finance capital and constrained budgets to appease global investors.
Codes Prioritise Ease Of Doing Business
- The labour codes are explicitly framed to ease doing business and attract investment, not primarily to expand worker rights.
- The government did not hold annual Indian Labour Conferences or meaningful tripartite consultations before these changes.