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  • Labour cell setup — preparing drastic reforms.
  • Integrating three laws – Trade Union Act, Industrial Disputes Act and Industrial Employment Act into a single code for industrial relations.
  • Infact , it is attempted to club 44 labour laws into 5 codes.
  1. Wages
  2. Industrial relations
  3. Social security and welfare
  4. Safety and Working Condition
  5. Employment Training
  • PM said Govt will bring it with consensus but Labour Union is discontented with this process and it opposes it.

Stand of Trade Unions

  • Trade unions happy that govt. will take consensus.
  • Integration of laws is welcome but the contents of the code are disputable and Government is trying to seize powers of trade unions.
  • Trade unions can be setup by workers of that company but it is not practical as the workers can’t register as they will be sacked by the owner. Trade Union movement will be finished.
  • According to KPMG-CII report, Labour laws are not in top ten constraints for Industrial setup and it is a misconception that labour laws are hindrance.
  • Because of capitalist model and mindset of Industrialists, we are not getting investments and it is not because of the labour laws of the country.
  • Welfare of workers.
  • Efficiency and sustainability of enterprise
  • Industrial peace
  • Tripartite mechanism of Government, Trade Unions and Management needs to arrive at a solution.

General view of Government

  • Tripartite mechanism.
  • Success of Make in India needs the change in Industrial Relations scenario of the country. This requires change in Labour Laws.
  • Our country has been bypassed by Labour intensive manufacturing. For Real success—we need an environment where investors are confident about putting a plant of large scale manufacturing.
  • Germany, after the destruction of war , decided that labour and Management have to come together to build Germany and it is one of the country where the labour is in board of the companies.
  • Our need is –more jobs must be generated. Most jobs in Informal sector (93%).Labour laws are part of the problem as the small firms which employ only 5-6 workers labour laws are not applied. We need companies which employ more of workers which will be in the interest of the labour and this can be done by reducing complex web of labour laws.


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