Speaking to South First R. Chandrasekharan recalled that the state had already held discussions on draft labour policy in 2021–2022.
Published Nov 29, 2025 | 4:00 PM ⚊ Updated Nov 29, 2025 | 4:00 PM
With a high density of registered unions Kerala has cultivated a labour ecosystem that prioritises worker security over corporate convenience.
Synopsis: Kerala’s strong labour rights history fuels unified Opposition from unions and the state government to India’s new Labour Codes, viewed as anti-worker for easing layoffs, extending workdays, and weakening protections. Despite preparing drafts under central pressure, Kerala demands consultations and highlights revenue losses for worker welfare, amid pre-election focus on reforms.
Kerala’s relationship with labour rights is unlike that of any other Indian state. Long before the labour movements of the post-Independence era, Kerala’s working class had already begun organising against exploitation by feudal landlords, moneylenders, and colonial-era plantation owners.
These early struggles eventually evolved into a powerful trade union ecosystem—one that today remains deeply woven into the state’s political, social, and economic fabric.
While states like Maharashtra or Tamil Nadu may boast greater industrial footprints, and states like Gujarat may appear more employer-friendly, Kerala stands out for one reason- nowhere in India have trade unions wielded as much influence or enjoyed as much historical legitimacy as they do here.
With a high density of registered unions Kerala has cultivated a labour ecosystem that prioritises worker security over corporate convenience.
It is precisely this background that sets the stage for Kerala’s strong and vocal opposition to the Centre’s four new Labour Codes. And the state has made it unambiguously clear, Kerala will not implement the new Labour Codes at least not in their current form.
Over the past few years, the Union government has consolidated 29 existing labour laws into four major codes – Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), OSH, and Working Conditions Code (2020).
The Centre notified the codes for implementation from 21 November, putting pressure on states to frame corresponding rules.
But in Kerala, the Left-backed CITU to the Congress-backed INTUC have taken a common stand – Codes are anti-worker, anti-union, and harmful to social justice.
Labour Minister V Sivankutty has repeatedly affirmed that Kerala will not move forward until full consultations are held with unions, experts, and civil society.
Draft rules were prepared in 2021 only because the Centre instructed states to do so. No further action has been taken for three years, and no file has moved after the drafting stage.
On 28 November, the minister directly conveyed Kerala’s objections to the Labour and Employment Union Minister Mansukh L Mandaviya.
Despite the Centre’s assurance that it would hold tripartite consultations with unions, the Codes were quietly notified, strengthening Kerala’s belief that the process is neither democratic nor transparent.
Picture from the online meeting held with trade unions and Labour Minister V Sivankutty.
Leaders from INTUC, CITU, BMS, HMS, AITUC, UTUC, STU, and several other unions met in online with the Labour Minister and unanimously passed a joint resolution opposing the new Labour Codes. The meeting saw participation from a broad spectrum of organisations, including Elamaram Kareem and T.P. Ramakrishnan (CITU), R. Chandrasekharan and V.J. Joseph (INTUC), K.P. Rajendran (AITUC), V. Radhakrishnan (BMS), Babu Divakaran (UTUC), Tommy Mathew (HMS), Sonia George (Seva Union), and Rahmatullah (STU).
Senior officials — Labour Department Special Secretary Shanavas and Labour Commissioner Safna Nasaruddin were also in attendance.
Speaking to South First, INTUC Kerala unit chief R. Chandrasekharan said that in a meeting with the labour minister, all trade unions except the BMS voiced their opposition to the labour codes. He added that it is Kerala’s culture that, despite political differences, both UDF and LDF governments engage in discussions with all trade unions.
However, he pointed out that the Modi government has not invited INTUC for any discussions for the past 11 years.
CITU staged a protest against the new labour codes.
Speaking to South First CITU member from Kottayam, Suresh Kumar, said the new Labour Codes erode hard-won protections by allowing easier layoffs, raising the threshold for government approval from 100 to 300 workers, which directly threatens job security in Kerala’s small and medium industries.
He pointed out that the right to strike is effectively curtailed through long notice periods and prohibitions, while the OSH Code’s flexibility normalises 12-hour workdays, undermining the eight-hour standard.
According to him, replacing inspectors with inspector-cum-facilitators weakens safety oversight in high-risk sectors like construction.
He added that social security is made uncertain as statutory rights are turned into schemes that can change with budgets, gig workers are recognised but left without enforceable benefits, digital-only systems risk excluding migrant and informal workers, and the revised wage definition lowers take-home pay for thousands of households already struggling with living costs.
Union Labour and Employment Minister Mansukh Mandaviya
Even though Kerala stands united in its opposition to the new Labour Codes, trade unions point out that the state itself has already introduced several provisions that are anti-labour. According to INTUC leaders, this gradual shift happened step by step over the past few years.
Speaking to South First R. Chandrasekharan recalled that the state had already held discussions on draft labour policy in 2021–2022.
”After that, no further action was taken. But now the LDF government is trying to create an impression that IAS officials drafted these rules under pressure from the Centre. That is incorrect. The state has full authority over its own IAS officers involved in policy preparation” he said.
BMS highlight that Kerala has on its own, adopted changes that go beyond the Central Codes.
”The state government increased the trade union registration fee from Rs 500 to Rs 10,000 a provision not included in the new Labour Codes but present in Kerala’s draft rules. Similarly, while the Centre proposed that a trade union’s registration should be deemed approved if no decision is taken within 45 days, Kerala had already amended this to 30 days back in 2020” Ajith GK, BMS state general secretary told South First.
A significant number of migrant workers still lack proper documentation, making access to welfare schemes difficult.
One of the biggest practical problems Kerala faces under the new labour codes comes from the change in construction cess rules. Now, houses that cost less than Rs 50 lakh do not have to pay the 1 percent construction cess.
In a state like Kerala, where most homes fall under this cost bracket, this single change is expected to trigger a massive revenue loss for the Construction Workers Welfare Board.
Earlier, cess applied to all buildings with a construction cost above Rs 10 lakh or a plinth area above 100 sq m (1,077 sq ft).
The new Central rule applies to all building permits issued after this date, though the state Labour Department is still awaiting operational clarity.
As per Section 2(6) of the Social Security Code, states can only increase the Rs 50 lakh ceiling but cannot reduce it. Meanwhile, the mandatory 1 percent cess for commercial buildings continues regardless of construction cost.
Consequences for Kerala are alarming:
With residential cess collections vanishing almost overnight, Kerala’s welfare infrastructure for construction workers, once considered one of the strongest in India, faces a severe financial crisis.
Many construction workers told South First that this issue needs urgent attention. They also stressed the immediate need to include migrant workers, who now make up the majority of the construction workforce, under welfare benefits.
However, a significant number of them still lack proper documentation, making access to these schemes difficult.
File photo of Minister V Sivankutty. (vsivankutty/Facebook)
As Kerala nears Assembly elections, labour issues and the Centre’s new Labour Codes are taking centre stage. INTUC state president R. Chandrasekharan told South First that INTUC plans to form an expert committee after 15 December to study challenges and launch an awareness drive on the evolution of India’s labour rights, highlighting Congress’ role.
Kerala, he reminded, is the only state where an INTUC leader, K Karunakaran, rose to the position of Chief Minister, a reflection of how deep the organisation’s roots run.
He noted that discussions have already been held with senior Congress leaders Mallikarjun Kharge, K.C. Venugopal, V.D. Satheesan, and Ramesh Chennithala. The aim, he said, is to ensure that labour concerns become central to policy-making.
Meanwhile, Labour Minister V. Sivankutty told the media that Kerala would move ahead with the implementation of the new Codes only after comprehensive consultations. He also announced a National Labour Conclave in Thiruvananthapuram on 19 December, bringing together key trade union leaders, legal experts, and labour ministers from non-BJP–ruled states.
Despite high-level talks, many workers including plantation and estate workers still live in harsh conditions, protesting for fair wages while their settlements crumble, a stark reminder that true labour reform must reach the lives of workers, not just committees or speeches.
(Edited by Amit Vasudev)
