India labor crisis: unions want laws repealed.
The new laws, while providing benefits such as social security and a minimum wage, also allow companies to hire and fire workers more easily, a statement from 10 major Indian trade unions, seen by Reuters, said.
The unions have strongly opposed the changes and have staged several nationwide protests over the past five years.
The statement comes as Prime Minister Narendra Modi has implemented four new labor laws passed by parliament five years ago, the biggest overhaul of labor laws in decades, which the government aims to simplify labor regulations and improve investment conditions to provide greater protection for workers.
Under the new laws, factories can work longer shifts and use women for night shifts. The number of workers that companies must obtain government permission to lay off will also be increased from 100 to 300. The move gives employers more flexibility.
Many companies have long seen India’s strict labor laws as a drag on growth in the manufacturing sector, which accounts for less than a fifth of the country’s nearly $4 trillion economy.
The Entrepreneurs’ Association of India has also expressed concern that the new rules could significantly increase operating costs for small and medium-sized enterprises and disrupt business in many key sectors.
The associations said that not all unions were against the plan, adding: “We urge the government to provide transitional supports and flexible enforcement mechanisms.”
In effect, Indian states will have to align their regulations with the four federal laws, which cover areas such as wages, industrial relations, social security, and occupational safety.