Nearly 75% of small industries face closure risk under labour codes: JCTU

Nearly 75% of industries and factories employing fewer than 300 permanent workers are at risk of closure, posing a serious threat to job security under the newly implemented four labour codes, the Joint Committee of Trade Unions (JCTU), Mysuru district committee, alleged in Mysuru on Wednesday (April 1).

In a statement here, JCTU said that prior to the new labour reforms, government permission was mandatory for closure of factories employing over 100 workers. However, with the revised threshold at 300 employees, proprietors can shut down operations more easily, it claimed.

Terming the Centre’s move as “anti-worker”, the JCTU observed a ‘Black Day’ on April 1 to protest the implementation of the labour codes from the same day. Members of trade unions, including All India Trade Union Congress, Centre of Indian Trade Unions, All India United Trade Union Centre, and All India Central Council of Trade Unions, staged a demonstration at Gandhi Square in Mysuru, protesting what they described as a “death knell” for the labour force in the country.

The protest was part of a nationwide call against the labour codes, with similar demonstrations held across various regions.

The JCTU, in its statement, alleged that the Centre is favouring employers while neglecting the interests of workers. It further claimed that the new codes have effectively scrapped 29 existing labour laws that had been in place since the pre-Independence era, thereby weakening worker protections and granting “excessive powers” to employers.

The statement also pointed out changes in union formation rules. Earlier, a labour union could be formed with just seven workers, but under the new provisions, at least 10% of the total workforce must express willingness for registration.

Trade union leaders, including AITUC district president N.K. Devadas and national vice-president H.R. Sheshadri, along with representatives from CITU, AIUTUC, and AICCTU, were present during the protest.