Labour Laws Sacrificed for Corporate Interests, Says Vasanth Achari

Labour Laws Sacrificed for Corporate Interests, Says Vasanth Achari

Labour Laws Sacrificed for Corporate Interests, Says Vasanth Achari

By Senior Reporter

Labour laws built through decades of workers’ struggles and constitutional safeguards are being weakened to protect corporate interests, alleged Vasanth Achari, Vice President of the Dakshina Kannada district unit of the Centre of Indian Trade Unions (CITU).

He made these remarks while inaugurating a protest foot march opposing the four new labour codes, at a time when labour reforms continue to generate nationwide debate among trade unions, policymakers, and economists.

Background and verified context

Labour movements in India emerged during the freedom struggle and later shaped key protections embedded in Fundamental Rights and Directive Principles of State Policy under the Constitution.

Since the 1990s, successive governments have introduced economic reforms including liberalisation, privatisation, and globalisation. In recent years, the Union government replaced 29 labour laws with four consolidated labour codes.

Speaking at the launch of the foot march from Moodbidri to Mangaluru, Achari stated that these reforms mark a shift away from the original intent of labour legislation. He argued that the new framework weakens collective bargaining and job security.

According to him, increased privatisation of public sector assets and services has prioritised corporate capital while reducing protections for workers, especially those employed on contracts.

Statements from labour and farmers’ representatives

Achari alleged that replacing 29 labour laws with four codes has increased vulnerability among workers and diluted access to social security benefits.

Farmer leader K. Yadav Shetty, District President of the Raitha Sangha, claimed that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is being weakened and that privatisation in the electricity sector and changes in seed policies are affecting farmers.

Trade unions point out that a large majority of India’s workforce is employed in the unorganised sector. They argue that contract-based employment often limits access to provident fund benefits, insurance coverage, and legal remedies.

Legal and policy explanation

Policy experts note that the labour codes were introduced with the stated aim of simplifying compliance and improving ease of doing business. The Union government has maintained that the reforms will promote investment and employment.

Labour law specialists, however, say the impact depends largely on state-level rules, enforcement mechanisms, and judicial oversight.

Achari pointed to Kerala as a state that has expressed reservations about certain provisions of the labour codes, while alleging that the Karnataka government has drafted rules closely aligned with the Union framework.

Public relevance and wider impact

Labour regulations directly influence wages, working hours, safety conditions, and access to social security for millions of workers. Economists say large-scale labour reforms can have long-term effects on employment patterns and income inequality.

What is officially confirmed and what remains under debate

It is officially confirmed that the Union government has enacted four labour codes replacing earlier labour laws. It is also confirmed that several central trade unions, including CITU, oppose these reforms and are organising protests and strikes.

The long-term impact of the labour codes on workers’ rights, employment generation, and industrial relations remains under debate, as comprehensive post-implementation data is still limited.

Disclosure

This report is based on public statements made during a protest event and official information on labour reforms. Interpretations may evolve as implementation progresses and further data becomes available.

Expert / Legal Clarification

Legal experts explain that consolidation of laws does not automatically reduce rights. However, gaps can emerge if implementation rules and enforcement mechanisms are weak. Courts and state governments play a key role in determining actual outcomes.

FAQs

What are the four labour codes?
They cover wages, industrial relations, social security, and occupational safety and working conditions.

Who raised concerns about the labour codes?
Several trade unions, including CITU, and farmer organisations have raised objections.

What is the government’s stated position?
The Union government says the reforms simplify laws and encourage investment.

Is any protest planned?
Trade unions have announced a nationwide general strike on February 12.

References / Sources

Ministry of Labour and Employment, Government of India