May Day: Indian workforce faces challenges amidst labour reform
This May Day analysis highlights the precarious state of Indian labour, citing two recent events: a protest by garment workers in Noida demanding higher minimum wages and a fatal boiler explosion at a Vedanta plant in Chhattisgarh. These incidents underscore the impact of India's new labour regime, which consolidated 29 central labour laws into four codes in November 2025. Critics argue these reforms, including increased thresholds for layoffs and diluted inspection mechanisms, favour employers and reduce worker protections. The article contends that the reforms have not rationalized protection but rather removed it, leading to wage stagnation and unsafe working conditions, as exemplified by the Noida strike and the Singhitarai accident.
Key Points
- May Day serves as a diagnostic for the state of Indian labour, marked by recent worker protests and industrial accidents.
- India's new labour regime, enacted in November 2025, consolidated 29 central labour laws into four codes.
- The reforms are criticized for raising thresholds for layoffs and diluting safety oversight, potentially favouring employers over workers.
- The article links wage stagnation and unsafe working conditions to the outcomes of these labour reforms.
- The incidents in Noida and Singhitarai illustrate the challenges faced by the Indian workforce under the new labour framework.
Exam Facts
- Four labour codes adopted on November 21, 2025: Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety, Health and Working Conditions (OSHWC) Code.
- These codes replaced 29 central labour laws.
- OSHWC Code, 2020, raises the statutory definition of a 'factory' from 10 workers (with power) to 20, and from 20 workers (without power) to 40.
- IR Code raises the threshold for prior government permission for layoffs from 100 workers to 300.
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