Why weakening Trade Unions produces the Labour Unrest it claims to prevent

ON APRIL 13, 2026, a demonstration led by garment factory workers in the Gautam Buddha Nagar district of Noida turned into a violent protest leading to fraught public order in several areas of the city. There were reported incidents of stone pelting, clashes between workers and police personnels, vehicles being set on fire, physical violence, amongst others. A large number of workers from several industrial establishments in Noida had gathered to protest for their long pending demand of wage hike and better working conditions. 

Collective action escalated into serious law and order issues causing widespread disruption across the city. While attempts were made to frame this incident as a law and order crisis, one cannot overlook the fact that similar incidents have also occurred in other parts of the country like Ludhiana, several parts of Maharashtra, Telangana, amongst others, in the last few months. While the recent LPG crisis may have escalated matters, one would do well to not view the recent upheaval through the lens of exceptionalism. These incidents reveal a pattern of studied silence by the authorities towards the issues affecting the pan-Indian worker community, at large.

Notably, these worker protests have intensified since the enforcement of the four new labour codes. The overall sentiment of trade unions and workers’ organisations across the country towards the enforcement of the labour codes has been overwhelmingly critical. While the Noida episode might have drawn significant attention of the authorities leading to wage revisions, these incidents are symptoms of a broken industrial relations framework. 

Trade unions as participatory agents in the industrial relations system

Trade unions act as institutions of workers’ voice in labour markets and further direct communication between workers and the management. In a good industrial relations system, trade unions play a critical role in collective bargaining processes, enabling economic benefits for both the employer and the worker. Trade unions operate as institutional channels for expression and aggregation of worker’s voices, contributing to ‘participatory benefits,’ that are an imperative for lasting industrial peace. Trade unionism doesn’t only affect wage premiums but it also produces certain non-wage effects like improved working conditions, better fringe benefits, lower exit of workers, improved job satisfaction of workers, better industrial relations, amongst others. In the Indian context, rather than reforming the country’s industrial relations system, to make it more democratic and effective at handling conflicts, the trends clearly point towards an increasing repression of worker’s voices and marginalization of unions. 

Unpacking the new statutory reforms in relation to trade unions

Under the new labour codes, trade unions are regulated under the Industrial Relations Code, 2020 (‘IR Code’). The most significant contribution of the IR Code is the introduction of the concept of recognition of a sole negotiating trade union. Section 14 of the IR Code provides the criteria for recognition of the negotiating union. It provides that if there are multiple registered trade unions operating in an establishment, then the trade union having fifty one percent or more workers, in the muster roll of that industrial establishment, as its members, would be recognised by the employer of the industrial establishment as the sole negotiating union of workers. 

If there is only one registered trade union in an industrial establishment then that trade union would become the sole negotiating union. Moreover, if no trade union is able to gather support of fifty one percent of workers, then, a negotiating council would be formed by such trade unions which would have not less than twenty five percent of workers in its support. The negotiating union would have the right to negotiate on all broad service conditions affecting workers with the employer in an industrial establishment. 

Additionally, the IR Code significantly regulates the right to strike of workers as compared to the earlier legal framework. Workers are now required to give a strike notice prior to fourteen days before going on strike and the strike should happen within sixty days of the issuance of the notice. If the workers intend to strike after the statutory timeline of sixty days, then they must issue a fresh notice. 

Earlier, these provisions were mandated only for public utility establishments like establishments concerning railways, electricity etc, where disruption would cause significant hardship. In contrast, the IR Code extends these provisions indiscriminately to all industrial establishments. Further, the IR Code bars strike action while conciliation proceedings are pending. Any attempt to strike in contravention of these provisions is deemed illegal and there are statutory fines and imprisonment prescribed for workers who would participate in illegal strike action.