Why is the strike on 9th July?
Workers are at a crossroads today and their rights are in jeopardyDr Santosh Kumar Mohapatra
Out of nearly 60 crores of workers in India, 10 % works in organised sector while rest in unorganised/informal sector. In organised sector, there was some sense of security, dignity of work, need based wages and some other benefits and social securities. But for unorganised workers, rarely there is such benefits. But due to liberalisation, privatisation and globalisation policies of government with concomitant crony capitalism, workers’ rights, privileges and dignity are imperilled, jeopardised in both organised and unorganised sector.
The unfettered flow of capital has exacerbated the exploitation of labourers. The gulf between the rich and the poor has amplified, and this is due to a greater level of exploitation of labour by capital. The capital exploits labour more today than in the past, due to increased automation, the rise of gig economies, rising unemployment and globalized supply chains.
Automation is leading to job displacement, but it is not creating new jobs in tandem with decline of jobs. These changes are leading to lower wages, precarious work conditions, and less worker power. Yet, capital tends not only to exploit labour-power, but also ignores its contribution to the development process. Capitalists seek to obscure workers’ contribution to that process, whereas workers strive to have their contribution fully recognized.
Actually. It is not corporate honchos but workers are real creator of wealth. But labours’ interest is rarely protected. Real wages – nominal wages factoring inflation – are among the most significant economic indicators of labour’s welfare. If the real wages don’t increase in tandem with the rise of the country’s GDP, or there is no substantial increase in real wages with passage of times, then labourers are exploited. That is precisely what seems to be happening in the Indian economy today. Combination of slow wage growth and “back-breaking” inflation has triggered an unprecedented decline in real wages. India’s economic boom camouflages wage crisis.
As per the Economic Survey 2025, despite India’s growth, real wages for men have dropped, exacerbating inequality. The inflation is outpacing wage growth, eroding purchasing power and deepening economic inequality. In 2023-24, real monthly wages for male salaried workers were 6.4 percent lower than in 2017-18, showing a significant loss of purchasing power. For self-employed men, real incomes dropped by 9.1 percent over the same period. The squeeze is even more apparent in rural India. Both sources point to a virtual stagnation of real wages in the last 10 years or so. The democratic rights of working-class people have been shrinking due to rise of market influence, democratic backsliding and the erosion of media freedom.
In this background, to protest against what workers call the government’s “anti-worker, anti-farmer and pro-corporate policies” the 23rd countrywide General Strike against neo-liberal policies of government is going to be held on July 9, 2025, by the Joint Platform of Trade Unions, comprising ten Central Trade Unions (CTUs) and independent all-India sectoral federations and associations like AIIEA, AIBEA, GIEAIA, AILICEF, AIBOA, BEFI etc
The Joint Platform of Trade Unions comprises Indian National Trade Union Congress (INTUC), Centre of Indian Trade Unions (CITU), All India Trade Union Congress (AITUC), Trade Union Congress (TUC), Self Employed Women’s Association (SEWA), All India Central Council of Trade Unions (AICCTU), Hind Mazdoor Sabha (HMS), Labour Progressive Federation (LPF), United Trade Union Congress (UTUC) and the federations representing government employees are participating in the strike.
Around 25 crores of workers belonging to organised and unorganised sector are going to participate in strike. The strike notices are served at banks, insurance companies, steel sector, coal sector, minerals and petroleum sector, copper sector and in some airports. Rail workers will have mobilisations in support of strike, but no strike there. Defence sector is going on strike. All the states, government employees have given strike notice. The five Left parties including Congress have extended their full support too.
The July 9 General Strike echoes the demands raised by the trade unions, which also reflect the concerns of peasants, agricultural workers, and the broader public. The strike call is given on 17-point charter of demands which scathingly against the policies of present ruling dispensation at Centre. Various industries , organisations have some extra demands too based on philosophy of protecting and strengthening their own industries too.
Apart from abrogating the four Labour Codes , the charter of demands that include implementing the national minimum wage of ₹26,000, a minimum PF pension of ₹9000 per month and a monthly pension of ₹6000 for those who are not covered under any pension schemes.; increasing the wages and work days under MGNREGA, a rollback of privatisation of State assets; taming in inflation and abolition of GST on essential items, insurance premium; reduction of central excise duty on petroleum products and LPG; ensuring food security, expanding the Public Distribution System; restoration of the old pension scheme; strengthening public sector banks and public sector insurance companies; fighting contractualization of jobs ; opposing 100% FDI hike in Insurance sector; ensuring adequate recruitments.; scrapping NPS and restoring OPS; merging public sector general insurance companies etc.
. The demands at the State-level include the immediate release of pay arrears of workers and employees working in public sector and government-owned enterprises and cooperatives, pay equalisation for contract workers and withdrawal of amendments to the Electricity Act and the revival of shuttered cooperatives. Another important issue pertains to the earmarking of funds to operationalise the Welfare Board for unorganised workers.
The General Strike has been called mainly against the implementation of the Labour Codes, which are a key part of the corporate agenda aimed at severely curbing the basic democratic rights of workers, including their right to organise and undertake collective action.
Against four labour codes
The government was trying to implement the four Labour Codes, which stand against the labour rights we have in this country. This government does not believe in consultation. The Indian Labour Conference has not been convened for more than a decade. They are frightening State governments that there will be no investments in states if Labour Codes are not implemented. States have to follow Indian constitution and our label laws
Of the present 44 labour laws, the government have totally abolished 15 laws and rest 29 laws converted into four codes. The four labour codes are named as: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020.
To the detriment of working-class people, India is poised to formally launch the long-anticipated labour reforms under a new legal framework. The Labour ministry has decided to amalgamate 29 labour laws out of 44 central labour laws into four codes—on wages, industrial relations, social security and occupational safety, health and working conditions. The remaining 15 central labour laws are being repealed as they are considered redundant by government or subsumed under the four new codes.
Though, it is propagated that the new labour codes are a transformative step for India’s employment landscape, actually, it will adversely affect the interest of workers and it will create an ecosystem to instil fear among workers and curb their striking power and democratic rights. The rights of workers, particularly their ability to form trade unions, organize strike, and bargain collectively will be eroded. The Indian Constitution that protects fundamental rights including freedom of association will be undermined.
The 8-hour workday and a 48-hour workweek is going to be annihilated to suit interest of business behemoths. momentum through trade unions and socialist movements, leading to the Haymarket insurrection in Chicago, a pivotal event in the fight for workers’ rights. The International Labour Organization (ILO) later endorsed the 8-hour day, solidifying its significance in the global labour movement.
Despite India’s labour laws capping working hours at 48 per week under the Factories Act, 1948, many employees, particularly in urban areas, often find themselves working overtime without adequate compensation. Labour laws, though designed to protect workers, are not always effectively enforced, leaving employees vulnerable to exploitation. Unfortunately, there is talk of increasing working hours from 48 hours to 70 hours to even 90 hours per week to enhance the profits of employers to the detriments of work-life balance.
The new Indian Labour Code allows for a 4-day workweek, but with the requirement of longer daily shifts to meet the maximum weekly working hours of 48 hours. This means employees might be working up to 12-hour days to fulfil their weekly obligations. Actually, business behemoths will implement 12-hour work per day but not 4-day workweek.
Wide-ranging research indicates that long work hours lead to increased stress, burnout, and serious health problems. Besides, they can encumber productivity as individuals’ capacity to perform effectively reduces after a certain threshold. India ranks among the highest countries for deaths linked to overtime, according to a joint study by the International Labour Organisation (ILO) and the World Health Organisation (WHO).
Gujarat govt amends Factory Work Laws, allows 12-hour shift and night duties for women. The move is part of the Factories (Gujarat Amendment) Ordinance, 2025, which was issued on July 1 by the Labour, Skill Development and Employment Department, in the absence of a state assembly session.
Hourly wages concept is being introduced too. Presently if the work is not of a full day but the wages have to be paid for the full day. But now, the employer can engage on an hourly basis. Instead of long term employment, fixed term employment for some years introduced. Its annual renewal depends upon whims, caprices of the employer. This will discourage workers to participate in union activities or fight against injustice and exploitation
For retrench, lay off or closure , the government permission is required if any organisation having 100 or more workers .Now, it has been increased to 300 or more, as a result of which 60% business establishments will be out of the ambit of labour laws. No compensation for closure is mentioned in the new code.
Presently a 14-day notice period prior to strike is required which is changed to 60 days. To apply for union registration the present limit of 7 workers has been changed to 10% of total workers or 100 which is less. If at any moment the number reduces, it will face de-registration.
Against disinvestment and privatisation
Disinvestment is creeping privatisation. When share of government in a public sector does not remain more than 50 % it is no more considered as public sector. Disinvestment of public sectors and monetisation of government assets (selling assets) is tantamount to handing overs public resources, property to private individuals at cheaper prices
One may argue that public sectors are incurring losses but that is quite wrong. The collective net profit of all 12 public sector banks reached ₹1.78 lakh crore in 2024-25, a 26% year-on-year increase ₹ 141,203 crore in 2023-24. However, it is due to loan write off. The Central Public Sector Enterprises (CPSEs) have contributed a record ₹4.85 lakh crore to India’s financial resources in 2023- 2024, a 120 per cent increase from ₹ 2.20 lakh crore in 2013-2014, the Finance Ministry said on Monday. 56 listed PSUs made a combined profit of ₹ 5 lakh crore in 2023-24. The country’s largest lender, SBI and insurance giant Life Insurance Corporation of India (LIC) led the charge with a net profit of ₹18,643 crore and Rs 19,013 crore, respectively. The SBI’s net profit for the financial year 2024-25 has now soared to ₹70,901 crore, while the LIC has recorded an impressive net profit of ₹48,151 crore for the year
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Scraping NPS, UPA and restoring OPS
For existing employees, the government has decided not to revive old pension scheme (OPS). They say they will go ahead with Unified Pension Scheme (UPS). Now, the UPS is worse than the National Pension System (NPS). Once you opt for UPS, you have no other option to shift to NPS or to OPS.
The government’s expenditure on pensions is a critical aspect of social security and welfare, and it continues to evolve with changing demographics and economic conditions. But government has introduced New Pension Scheme in 2004 which was rechristened as National pension Scheme / National pension system. Now UPS is introduced while working class are demanding old pension scheme (OPS) where benefits are completely defined. It is told that government wants to scrap OPS as government expenditure on pensions in India is a significant portion of the national budget. But the central government alone is projected to spend around ₹2.40 lakh crore on pensions in BE 2024-25. The Centre and states spent about ₹ 9.6 lakh crore on the pensions of their employees in 2023-24 (revised estimates), accounting for 3.3 per cent of India’s gross domestic product (GDP.)
But, in 2022, approximately across EU countries expenditure on pensions was equivalent to 12.2% of the EU’s GDP. This ratio peaked in most indebted country Greece at 16.4% of GDP, followed by Italy (16.3%), Austria (15.0%) and France (14.9%). in 2024, Japan’s public pension expenditure is estimated to be around 10.2% of GDP, while the US spends roughly 6.74% of its GDP on pensions. In China, public pension expenditure is around 5.3% of GDP, while in Japan, it’s significantly higher, reaching around 10% of GDP, according to the ILO.
India’s expenditure on social services is around 7.8% of GDP in 2023-24. This includes spending on various sectors like education, health, and social security. But In Japan, social expenditure was around 24.9% of GDP in 2021, while China’s was around 10% of GDP and in the US to roughly 32.1% of GDP. So Old pension schemes should be extended to more people in view of lack of social security’s schemes and privatisation of health sector.
To be continued ——
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