Workers Unrest and Labour Reforms

For Prelims: Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, Occupational Safety, Health and Working Conditions (OSH) Code, 2020, Gig workers 

For Mains: Labour Reforms in India: Evolution, objectives, and challenges, Impact of Labour Codes on Informal Sector and Gig Economy, Balance between Ease of Doing Business and Workers’ Rights 

Source: IE 

Why in News?

A wave of strikes by gig workers and factory workers in Noida (Uttar Pradesh) and nearby industrial regions have exposed deep concerns over low wages, job insecurity, and poor working conditions, posing a serious test for the implementation of India’s Four Labour Codes.

Summary 

• Worker protests in India are driven by rising inflation and stagnant wages, along with delayed revisions in base minimum wages and regional wage disparities. 
• Ambiguities in labour codes and delayed rule implementation have created confusion over wages, working hours, and legal protections. 
• Growing job insecurity and exploitation, including contract employment, gig worker precarity, and longer working hours, have intensified unrest.

What are the Reasons for Workers Protest in India? 

• Inflation-Driven Wage Erosion: The minimum wage system follows a two-component structure, comprising a base wage revised every five years and a variable component (dearness allowance) linked to inflation and updated twice a year using Consumer Price Index for Industrial Workers (CPI-IW) . 
  • Between 2021 and 2026, the Consumer Price Index for Industrial Workers (CPI-IW) surged by nearly 25%. 
  • However, while states have revised the inflation-linked component, they have delayed updating the base wage, resulting in inadequate overall wage growth. 
  • Protests were further triggered by a 35% minimum wage hike in Haryana in April 2026, which raised expectations among workers in neighbouring regions like Noida.  
  • Additionally, regional disparities in wage levels across areas within states, such as differences between Noida, municipalities, and other regions in Uttar Pradesh, have intensified worker dissatisfaction.  
  • Protests were also partially fueled by a false expectation that the new Labour Codes guaranteed a flat Rs 20,000 minimum wage, a rumor stemming from a misread Central government notification. 
• Statutory Right to Minimum Wages:  The Code on Wages, 2019 establishes a statutory right to minimum wages for all employees across both organized and unorganized sectors. 
  • Earlier, the Minimum Wages Act, 1948 applied only to scheduled employment covering ~30% of workers. 
  • However, over 90% of India's workforce operates in the informal sector. Without credible enforcement, statutory right to minimum wage remains non-binding on paper and is routinely ignored. 
• Global Supply Chain Shocks: Input cost pressures stemming from US tariffs and the 2026 West Asia conflict have squeezed factory profit margins, leading directly to delayed wage payouts and heightened job insecurity on the factory floor. 
  • Factory workers, predominantly migrants, are disproportionately hit by surging local room rents, food prices, and reliance on black-market essentials (like heavily inflated LPG cylinders). 
• Exploitation of Working Hour "Flexibility":  The new Occupational Safety, Health and Working Conditions (OSH) Code, 2020 shifts daily shift regulations from strict parliamentary law (the old Factories Act) to executive rules. 
  • While the Code prescribes a 48-hour work week, it does not clearly define daily working hours, rest intervals, or spread-over limits, leading to confusion.  
    • This has allowed some employers to exploit draft provisions by enforcing 12-hour shifts under the guise of a 4-day workweek, often without adequate overtime compensation.  
  • Since labour is a subject on the Concurrent List, delays by states in finalizing rules have created a transitional grey area, leaving workers vulnerable to exploitation and without clear legal safeguards.  
• Rise of Precarity and Diluted Rights: The Industrial Relations Code, 2020 expands the threshold for prior government approval in cases of lay-offs, retrenchment, and closure from 100 to 300 workers, with states empowered to increase it further. 
  • While this aims to simplify compliance and encourage formalisation, it raises concerns about reduced job security and increased vulnerability of workers. 
  • The Code also mandates a 60-day notice period before strikes and restricts strikes during conciliation proceedings, significantly limiting the scope of legal industrial action.  
  • Additionally, it promotes the use of Fixed Term Employment (FTE) and contract labour for core activities, potentially replacing permanent jobs with roles that offer little or no long-term security. 
• Weak Collective Bargaining: Recognition of trade unions and bargaining processes are left to states, leading to fragmented labour representation. 
• Gig and Platform Economy Crisis: Platform workers protest due to unilateral changes to piece-rate wages (e.g., reducing per-delivery payouts).  
  • They face "algorithmic tyranny" where ratings and dark-store software dictate their earnings without human recourse. 
  • Platforms classify these workers as "independent contractors" or "partners" rather than employees, deliberately circumventing the Minimum Wages Act, 1948, and bypassing traditional employer liabilities. 

Right to Strike 

• The right to strike refers to the collective refusal by workers to work in order to demand better wages, working conditions, or labour practices, and is generally recognized across political systems as a legitimate, though last-resort, tool.  
• In India, while the right to protest is a fundamental right under Article 19 of the Constitution, the right to strike is not a fundamental right but a legal right subject to statutory restrictions.  
  • It was first given limited recognition under the Trade Unions Act, 1926 and later regulated by the Industrial Disputes Act, 1947, now subsumed under the Industrial Relations Code, 2020.  
• The right to strike in India is not absolute and flows from the fundamental right to form associations, making it subject to reasonable restrictions imposed by the state. 
• At the international level, the right to strike is recognized under conventions of the International Labour Organization, of which India is a founding member.

What are India's Four Labour Codes?

• Labour Code: A labour code is a consolidated set of laws regulating employer–employee relations, including wages, social security, industrial relations, and workplace safety. 
  • To rationalise India’s complex and archaic labour regulatory framework, the Central Government consolidated 29 central labour laws into four distinct codes (passed in 2019 and 2020).  
  • These were designed to improve ease of doing business while safeguarding worker welfare 
• The Code of Wages, 2019: It merges four key laws (The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The Payment of Bonus Act, 1965; and The Equal Remuneration Act, 1976) into a single framework.  
  • It brings uniformity in wage rules, ensures fair and timely payment, promotes gender equality and simplifies compliance for employers while strengthening workers’ rights. 
• The Industrial Relations Code, 2020: It combines and simplifies provisions from earlier laws like the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947. 
  • It seeks to balance worker rights with industrial stability by streamlining rules on union recognition, employment terms and dispute resolution. 
• The Code on Social Security, 2020: It merges nine existing laws like The Employee's Compensation Act, 1923, The Employees' State Insurance Act, 1948, The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 into one unified framework and extends benefits to all workers, including those in the unorganised, gig and platform sectors.  
  • It covers maternity, health, life insurance and provident fund benefits while promoting digital processes and easier compliance. 
• The Occupational Safety, Health and Working Conditions Code 2020: It consolidates 13 labour laws such as Factories Act, 1948, Plantations Labour Act, 1951, and Mines Act, 1952.  
  • The Code aims to ensure safer working conditions while simplifying compliance for businesses, creating a more efficient, fair and future-ready labour framework.

What Measures can Strengthen Labour Reforms? 

• Adopt the Rajasthan Model for Gig Workers: The Union Government should look at the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023. It established a welfare board with mandatory representation of gig workers and an algorithmic tracking of all platform transactions to automatically deduct a welfare cess. 
• Algorithmic Transparency: Mandate that aggregators share data regarding wage calculation algorithms, penalization metrics, and working hours with the Ministry of Labour to prevent exploitation. 
  • Moving away from physical "Inspector Raj," the government must invest in data-driven, risk-profiled inspection systems. Mandating digital wage payments and electronic employment records can drastically improve compliance. 
• Establish a Binding National Floor Wage: National Floor Wage must be made strictly binding on all states and revised dynamically based on the Consumer Price Index (CPI). 
  • The national floor wage must be set at a "Goldilocks" level binding enough to protect workers, yet sustainable enough for employers to manage without resorting to job cuts. 
• Strengthen Tripartism: The cornerstone of industrial peace is the tripartite model (State, Employer, Employee).  
  • The government must actively revive the Indian Labour Conference (ILC) to build consensus regarding the rules of the four labour codes.

Conclusion

The ongoing unrest shows that labour reforms without ground-level protection can deepen precarity rather than create quality jobs. Unless issues like job security, gig worker rights, and enforcement gaps are addressed, the codes may remain pro-industry on paper but weak in practice. India’s challenge is to ensure growth with dignity, not growth at the cost of its workforce. 

Frequently Asked Questions (FAQs) 

1. What are India’s Four Labour Codes? 
Consolidation of 29 labour laws into four codes covering wages, industrial relations, social security, and workplace safety. 

2. What is the key concern with the Industrial Relations Code, 2020? 
Raises threshold to 300 workers for layoffs without approval, weakening job security. 

3. How does the Code on Social Security address gig workers? 
Recognises gig workers but does not grant employee status, limiting access to core labour rights. 

4. Why is the OSH Code criticised? 
High thresholds exclude millions in the informal sector, leaving them outside safety protections. 

5. What is the main implementation challenge of Labour Codes? 
Delayed state-level rules due to labour being in the Concurrent List, causing legal uncertainty.  

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? (2022)

(a) Central Statistics Office 

(b) Department for Promotion of Industry and Internal Trade 

(c) Labour Bureau 

(d) National Technical Manpower Information System 

Ans: (c) 

---

Mains 

Q. Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard? (2024)

India-Austria Relations

Source: PIB  

Why in News?  

The Federal Chancellor of the Republic of Austria undertook a four-day official visit to India. This diplomatic engagement marks a historic milestone as it is the first visit to India by an Austrian Chancellor in over four decades (the last being in 1984). 

What are the Key Outcomes of the Austrian Chancellor’s 2026 Visit to India? 

• Defence and Security Integration: Signed a Letter of Intent (LoI) on military matters to boost defence industrial and technology partnerships, building upon the momentum of the India-EU Defence and Security Partnership of January 2026. 
  • Both Nations agreed to establish a Joint Working Group on Counter-Terrorism to deepen strategic cooperation and coordinate efforts in the global fight against terror. 
• Economic and Trade Facilitation: Instituted a Fast-Track Mechanism to resolve operational bottlenecks for investors, significantly enhancing the 'Ease of Doing Business' between the two nations. 
• High-Technology and R&D: Cemented tech cooperation as a central pillar of the partnership, focusing on joint research and development in critical areas like quantum technology, machine learning, lasers, and material science. 
• Space Sector Collaboration: Announced a joint bilateral space industry seminar to be held in Vienna in Autumn 2026 to integrate their respective space innovation ecosystems. 
• Global Peacekeeping: Forged a strategic partnership between India’s Centre for UN Peacekeeping and the Austrian Armed Forces International Centre (AUTINT). 
• Food Security and Agricultural Trade: Signed an MoU between FSSAI (India) and AGES (Austria) to harmonize risk assessment, share best practices, and promote the trade of safe agricultural products. 
• Cybersecurity and Infrastructure: Launched a dedicated Institutional Cybersecurity Dialogue and renewed technical cooperation in advanced road infrastructure, specifically Intelligent Transport Systems (ITS). 
• Skill Development and Youth Mobility: Operationalized the Working Holiday Programme, alongside an LoI to promote dual vocational training and the mutual recognition of educational and vocational qualifications. 
• Startup and Academic Exchange: Enhanced the India-Austria Startup Bridge( 2024)  and launched the "Focus India" initiative by top Austrian technical universities to facilitate admissions for Indian engineering students. 
  • An MoU signed between IIT Delhi and Montanuniversität Leoben was highlighted as a “shining example of growing knowledge exchange and academic cooperation” between India and Austria.

How are the India-Austria Bilateral Relations? 

• Remarkable Trade Growth: Bilateral trade has seen a significant upward trajectory, doubling from USD 1.08 billion in 2019-20 to USD 2.06 billion in 2023-24, showcasing a Compound Annual Growth Rate (CAGR) of 17.36%. 
  • India successfully reversed its trade deficit to record a trade surplus of US$ 214 million with Austria in 2023-24. 
• Key Traded Commodities: India primarily exports electronic goods, textiles, and machinery, while its imports from Austria are dominated by heavy machinery and steel. 
• Foreign Direct Investment (FDI) Trends: Cumulative Austrian FDI in India reached USD 663 million (between April 2000 and March 2024.  
• Foundational Economic Treaties: The economic partnership is underpinned by vital agreements, most notably the Double Taxation Avoidance Agreement (1999, amended in 2017) and the Bilateral Agreement on Promotion and Protection of Investments (1999). 
• Migration and Mobility Pact: A landmark achievement is the Comprehensive Partnership for Migration and Mobility (2023), designed to facilitate the legal, seamless movement of Indian skilled workers, students, and researchers while actively combating illegal migration. 
• Space:  Austria's first two satellites, TUGSAT-1/BRITE and UniBRITE, were launched from India's Satish Dhawan Space Centre, Sriharikota, in 2013. 

Geographical and Strategic Profiling of Austria 

• Location and Borders: Austria is a mountainous, landlocked country in south-central Europe.  
  • It is bordered by Germany (north-west), Czech Republic (north), Slovakia (north-east), Hungary (east), Slovenia (south), Italy (south-west), and Switzerland & Liechtenstein (west). 
• Geopolitical Stance: Alongside Switzerland, Austria forms the "neutral core of Europe." 
  •  It established permanent neutrality in 1955 (following post-WWII Allied occupation), yet it has been a full member of the European Union (EU) since 1995. 
  • Jawaharlal Nehru played a crucial role in facilitating the emergence of a neutral Austria by acting as a diplomatic mediator during the Cold War, supporting Austria’s case at the United Nations and engaging with the Soviet Union to break negotiation deadlocks regarding the Austrian State Treaty, which was concluded in 1955. 
    • Following the treaty, Nehru was the first foreign leader to visit newly independent Austria in June 1955. 
• Strategic Transit Hub: Its prominent geographic position embeds it centrally in European trade, bridging the East and West via the Danubian trade route and the North and South via the crucial Alpine passes. 
• Topography and Relief: The physical backbone of the country is formed by the Austrian Alps (divided into northern/southern limestone ranges and a central crystalline range).  
  • The highest peak is the Grossglockner and the northern region includes a portion of the Bohemian Massif. 
• Drainage System: Nearly all of Austria's territory drains into the Danube River system, which ultimately flows eastward into the Black Sea. 

Frequently Asked Questions (FAQs) 

1. Why is the 2026 Austrian Chancellor’s visit significant? 
It is the first visit in over 40 years, marking a major boost to India–Austria strategic relations. 

2. Where is Austria located geographically? 
Austria is a landlocked country in south-central Europe, situated at the crossroads of major European routes. 

3. Which countries border Austria? 
It borders Germany (NW), Czech Republic (N), Slovakia (NE), Hungary (E), Slovenia (S), Italy (SW), and Switzerland & Liechtenstein (W). 

4. What is meant by Austria being part of Europe’s “neutral core”? 
Austria follows permanent neutrality (since 1955), similar to Switzerland, while remaining outside military alliances. 

5. Which river system drains most of Austria? 
The Danube River system, which flows eastward into the Black Sea. 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. Consider the following statements: (2023)

1. The ‘Stability and Growth Pact’ of the European Union is a treaty that  
2. limits the levels of the budgetary deficit of the countries of the European Union 
3. makes the countries of the European Union to share their infrastructure facilities 
4. enables the countries of the European Union to share their technologies 

How many of the above statements are correct 

(a) Only one 

(b) Only two 

(c) All three 

(d) None

Ans: (a)

State of India’s Bats Report

Source: IE 

The first-ever national assessment, State of India’s Bats (2024–25), highlights the growing neglect and threats faced by bat species in India due to urbanisation, deforestation, land-use change, and climate impacts.  

• Prepared by experts led by Nature Conservation Foundation and Bat Conservation International, the report underscores severe data gaps and the urgent need for research. 
• Given bats’ critical ecological roles and their linkage with zoonotic diseases, the findings have implications for biodiversity conservation and public health. 

Key Findings 

• About: India hosts around 135 bat species, including 16 endemic species, reflecting significant biodiversity.  
  • However, 7 species are classified as threatened by the International Union for Conservation of Nature, while 35 species remain unassessed or data deficient, indicating serious knowledge gaps.  
  • Species like the Khasian Leaf-nosed bat face threats from hunting and mining, but lack proper conservation classification. 
• Habitat & Roosting: They roost in caves, trees and man-made structures such as buildings and monuments as caves provide a stable microclimate and protection from predators 
  • Robber’s Cave (Mahabaleshwar) hosts one of the largest roosts of Phillip’s long-fingered bat. 
• Function: Bats perform vital ecosystem services such as pollination, seed dispersal, pest control, and soil nutrient enrichment, making them indispensable for agricultural productivity and ecosystem stability. 
• Issues: The report highlights bureaucratic hurdles in research permissions, contributing to persistent data deficits. Post-COVID stigma has further worsened perceptions, wrongly portraying bats primarily as disease carriers, despite their ecological benefits. 

Read more: Indian Flying Fox Bat: Pteropus giganteus 

First Semiconductor Fab in India

Source:PIB

India has officially notified the establishment of the country's 1st semiconductor fabrication plant within a new Special Economic Zone (SEZ) in Dholera, Gujarat, marking a significant leap forward in India's electronics and IT manufacturing ecosystem. 

• First Semiconductor Fab in India: The SEZ is dedicated to Electronic Hardware, Software, IT/ITES, and is projected to generate employment for 21,000 people. 
• Semiconductor Fab: A semiconductor fabrication plant, or “fab,” is a highly advanced, multi-billion-dollar facility where microchips (integrated circuits) are produced on ultra-pure silicon wafers using nanoscale precision.  
  • Inside Class 1 cleanrooms, processes like photolithography, doping, and metallization create billions of transistors that power devices from smartphones to AI systems. 
• Progressive SEZ Rule Amendments (June 2025): To facilitate high-value, capital-intensive investments in this sector, the government amended the SEZ Rules, 2006. Crucial reforms include: 
  • Reducing the minimum land requirement for sector-specific SEZs from 50 hectares to 10 hectares. 
  • Introducing flexibility in encumbrance norms. 
  • Allowing the inclusion of free-of-cost supplies in Net Foreign Exchange (NFE) calculations. 
  • Permitting domestic sales in the Domestic Tariff Area (DTA) subject to the payment of applicable duties. 
• Strategic Significance: India is building a complete domestic manufacturing ecosystem under the India Semiconductor Mission 2.0, focusing on producing the entire semiconductor value chain from chemicals and gases to chip-making machinery within the country. 
  • These initiatives aim to catalyze domestic value chains, generate high-skilled employment, reduce import dependence, and position India as a globally competitive hub for semiconductor and electronics production.

Read more:  India Semiconductor Mission 2.0 

Karnataka HC on Menstrual Leave Policy

Source: TH 

The Karnataka High Court has directed the State government to strictly and faithfully implement the menstrual leave policy, reinforcing menstrual health as a matter of dignity, equality, and fundamental rights.  

• Mandatory Implementation: The State must uniformly operationalize the Menstrual Leave (ML) policy granting one day of leave per month to women employees aged 18-52 until the formal enactment of the Karnataka Menstrual Leave and Hygiene Bill, 2025. 
  • The Court stressed that awareness and facilitative mechanisms must be expanded beyond organized establishments (registered under acts like the Factories Act, 1948) to actively include vulnerable workers in the unorganized sector, such as daily wage laborers. 
  • The High Court observed that recognizing biological differences in women's health and bodily autonomy does not violate the right to equality.  
    • Instead, it moves past mere "formal equality" to provide substantive equality, addressing the "structural exclusion" women face due to unique biological needs. 
• Right to Life and Dignity: The Karnataka HC explicitly held that a woman’s menstrual health is intrinsically linked to her fundamental right to life and dignity under Article 21. 
  • The HC's stance echoes the pivotal Supreme Court judgment in Dr. Jaya Thakur v. Government of India & Ors. (2026), which officially recognized Menstrual Health and Hygiene (MHH) as a fundamental right under Article 21. 

Read more: Menstrual Health as a Fundamental Right 

Parkinson’s Disease

Source: TH 

April marks Parkinson’s Disease  Awareness Month, highlighting the importance of early diagnosis and timely treatment to improve quality of life. 

• Parkinson’s Europe founded World Parkinson’s Day in April 1997 with support from the World Health Organisation to mark the birthday of James Parkinson, who first described the disease in 1817.  

Parkinson’s Disease 

• About: Parkinson’s disease is a progressive neurodegenerative disorder that impairs movement and can eventually lead to immobility and dementia. 
• Prevalence: The global burden of Parkinson’s disease has doubled in the last 25 years, with India accounting for around 10% of cases. 
• Age & Gender: It usually affects people in their 5th–6th decade, though younger individuals may also be affected, and men are more commonly affected than women. 
• Cardinal Symptoms: The disease is characterised by tremors, slowness of movement (bradykinesia), and muscle rigidity. 
• Non-Motor Symptoms: Early signs may include constipation and sleep disorders, which can appear years before motor symptoms. 
• Diagnosis Challenge: Symptoms are often misinterpreted or ignored, leading to delayed diagnosis and prolonged suffering. 
• Treatment: There is no definitive cure, but medications can effectively manage symptoms and significantly improve quality of life.  
  • Advanced treatment options such as Deep Brain Stimulation (DBS) and MR-guided focused ultrasound offer targeted interventions for better symptom control in select cases. 

Read more:  Parkinson’s Disease 

Project Him Sarovar

Source: ET 

Recently, the Centre initiated Project Him Sarovar to address year-round water scarcity in Ladakh, where much of the melting snow and glacial water currently flows unused into rivers and streams. 

• About: It is a sustainable water management initiative aimed at capturing and utilising underutilised meltwater in the high-altitude cold desert region. 
• Need: Ladakh faces chronic water scarcity due to low precipitation and glacial retreat, while increasing tourism and the presence of armed forces have significantly raised water demand in the region. 
• Objective: To utilise stored water for irrigation, rural needs and long-term climate-resilient water management. 
• Implementation Areas: The project covers regions in Leh (Nimoo, Nubra, Diskit, etc.) and Kargil (Suru, Padum, etc.). 
• Project Design: The initiative involves constructing percolation tanks and small reservoirs using gravity-based systems and solar lift mechanisms to capture and store meltwater.  
• Additional Components: It includes plantation drives along riverbanks and roadsides, development of winter sports and ice-skating facilities on frozen water bodies, and promotion of local crops such as apricot, seabuckthorn and apples to support livelihoods.

Read more: Water Management: From Scarcity to Sustainability