Trade Unions and Federations to defend the rights, dignity and future of workforce
- Bruhaspati Samal –
Presently, the entire working class including employees and pensioners is passing through a period of unprecedented challenges and turmoil. The Central Government, through a series of regressive policies and legislative measures, has been persistently attacking the hard-earned rights of the working class in India. In the guise of reform and modernization, the government is systematically dismantling the social security architecture that once guaranteed the dignity, protection, and well-being of government employees and workers at large. The recent enactment of the Finance Act 2025 and the proposed implementation of the Four Labour Codes mark a dangerous turning point. These measures are not only discriminatory and anti-employee but are also indicative of a long-term plan to corporatize, privatize, and pauperize the public sector and the Indian working class.
To protest against this onslaught, the National Convention of Workers held at Pyarelal Bhawan, New Delhi on 18th March 2025, with the participation of all major Central Trade Unions barring the BMS, along with several independent federations, unanimously resolved to call for a nationwide general strike on 20th May 2025. This is not just a call for industrial action; it is a call to awaken the collective conscience of the nation and to defend the rights, dignity, and future of our workforce.
Let us begin by understanding the context of this struggle through a global comparison. Across the world, nations are increasingly recognizing the importance of strong social safety nets. Countries such as Germany, France, Japan, and Canada invest heavily in ensuring the financial security of their aging populations. For instance, Germany spends approximately 10.3% of its GDP on public pensions, while France allocates an even higher 13.8%. In contrast, India spends a meagre 1.7% of its GDP on pensions, excluding defense pensions. This disparity is stark and reflects the systemic apathy towards retired government employees. Japan has a two-tier pension system which covers over 90% of its elderly citizens, while Canada provides a public pension plan that guarantees a basic income to all retirees, irrespective of their contribution. Such models stand in contrast to India’s fragmented and exclusionary pension architecture.
Coming to workers' rights, the scenario is equally grim. In Scandinavian countries like Sweden and Denmark, collective bargaining coverage is over 80%, ensuring equitable wages, job security, and comprehensive workplace protections. These countries enforce a 37-hour work week, with strict regulations against forced overtime. Australia and the United Kingdom have strong minimum wage laws pegged to inflation and regularly revised based on cost of living indices. In contrast, in India, with the impending implementation of the Labour Codes, the working day is likely to be extended to 12 hours without proportionate remuneration or adequate safeguards. This is a direct assault on the historic gains achieved through decades of workers' struggles, including the 8-hour work day, a fundamental right recognized by the International Labour Organization (ILO).
The Four Labour Codes passed by the Central Government without adequate discussion or consultations with stakeholders are designed to favour employers while severely curtailing the rights of workers. The Code on Wages amalgamates four laws, but in doing so, it removes several essential worker protections and leaves the fixing of minimum wages at the mercy of state governments, many of whom have poor implementation records. The Code on Industrial Relations increases the threshold for layoffs without government permission from 100 to 300 workers, effectively legalizing mass retrenchments. The Code on Social Security excludes a large segment of informal workers due to stringent eligibility criteria and inadequate enforcement. It seeks to replace guaranteed benefits with contributory schemes which, in the Indian context, are practically non-functional due to poor compliance and administrative inefficiencies. The Code on Occupational Safety, Health and Working Conditions further weakens inspections and workplace safety norms, placing millions of workers at risk.
After segregating the employees into three distinct groups, i.e.; beneficiaries under the Old Pension Scheme (OPS), contributors under the New Pension Scheme (NPS), and a new category under the Unified Pension Scheme (UPS), now the Finance Act 2025 introduces a new layer of discrimination among government employees and pensioners by institutionalizing multiple categories based on retirement date and the implementation of Central Pay Commission (CPC) recommendations. This division violates the fundamental principle of equality enshrined in Article 14 of the Constitution. Employees who retire on different dates but serve under the same conditions are now being treated unequally, with different post-retirement benefits. A study by the Reserve Bank of India in 2022 confirmed that NPS beneficiaries are significantly worse off compared to OPS retirees, with pensions ranging from only 18% to 23% of their last drawn salaries. Similarly under UPS, the Govt. has tried to abolish the term ‘Pension’ for all purpose. Now instead of Assured Pension, Assured Minimum Pension and Assured Family Pension as declared, the Govt. has notified to give Assured Payout, Assured Minimum Payout and Assured Family Payout which is clear betrayal to the crores of employees and pensioners across the nation. It is pertinent to note that several states including Rajasthan, Chhattisgarh, Punjab, Himachal Pradesh, and Jharkhand have acknowledged the failure of the NPS and have taken concrete steps towards restoring OPS. These actions reflect the growing realization among political leadership at the state level that social security cannot be left to the vagaries of the market.
Further compounding the injustice is the arbitrary and delayed implementation of Central Pay Commission recommendations. There is no uniformity in the grant of benefits or the date of effect of revised scales. Many employees who retire just before a cut-off date lose out on revised pension and arrears. The demand for the merger of Dearness Allowance with basic pay, pending since long, has also been ignored. As per the current inflation trends, the DA has already crossed 50% of basic pay, yet the government has not taken any steps to revise the minimum wage, which remains stagnated at Rs. 18,000 despite recommendations by the Seventh CPC for periodic revisions.
On the broader national front, the government’s economic policies continue to exacerbate inequality. As per the Centre for Monitoring Indian Economy (CMIE), the unemployment rate has hovered between 7.4% and 9.3% over the past year, with youth unemployment exceeding 25% in urban areas. Informal employment accounts for nearly 91% of total employment, and most of these workers lack access to healthcare, pensions, and workplace protections. The massive push towards privatization of PSUs, closure of sick units without revival packages, and monetization of public assets is systematically destroying secure employment and turning permanent jobs into contract-based, low-paid, insecure work.
Prices of essential commodities have skyrocketed. Retail inflation as per the Consumer Price Index has remained above 5% for several quarters, with food inflation touching 7% in many months. Fuel prices, despite global moderation, continue to rise due to high excise duties. Subsidies on LPG, fertilizers, and food grains have been slashed drastically. The Union Budget 2025-26 shows a 17% reduction in food subsidy allocation and a 12% reduction in rural employment guarantees under MGNREGA. These cuts directly affect the working poor and marginal populations.
It is under these circumstances that the General Strike on 20th May 2025 assumes monumental importance. It is not a mere protest. It is a decisive battle to reclaim the rights that have been snatched from the workers. It is a collective assertion of the dignity of labour, workers’ right to a life of security and a refusal to accept second-class treatment in a democracy.
(The author is a Service Union Representative and a Columnist. eMail: samalbruhaspati@gmail.com, Mobile: 9437022669)
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