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2 Feb 2026·Source: The Hindu
3 min
EconomySocial IssuesPolity & GovernanceNEWS

Trade Unions Criticize Budget for Neglecting Unemployment and Social Security

Trade unions express disappointment, stating the budget fails to address unemployment and social security.

Trade Unions Criticize Budget for Neglecting Unemployment and Social Security

Photo by The New York Public Library

Major trade unions have criticized the recent budget, stating it largely ignores critical issues of unemployment and social security for workers. The Centre of Indian Trade Unions (CITU) highlighted that the budget lacks concrete measures to create jobs and provide adequate social protection. They argue that the government's focus on capital expenditure does not directly translate into immediate job creation for the masses. Concerns were also raised about the absence of specific allocations for universal social security schemes and the plight of unorganized sector workers. The unions emphasized that while the government claims to be inclusive, the budget fails to address the fundamental needs of the working class, particularly regarding job security and welfare.

Key Facts

1.

Criticism from Centre of Indian Trade Unions (CITU)

UPSC Exam Angles

1.

GS Paper 2: Social Justice - Labor and Social Security

2.

GS Paper 3: Economy - Unemployment and Inclusive Growth

3.

Potential for statement-based questions on labor laws and social security schemes

Visual Insights

Trade Unions' Concerns Regarding Unemployment and Social Security

Key concerns raised by trade unions regarding the budget's lack of focus on unemployment and social security, particularly for unorganized sector workers.

Lack of Concrete Job Creation Measures
Unspecified

Trade unions argue that the budget lacks specific measures to create jobs, especially for the masses. This impacts economic growth and social stability.

Absence of Specific Allocations for Universal Social Security
Unspecified

The budget does not allocate specific funds for universal social security schemes, leaving vulnerable populations at risk.

Plight of Unorganized Sector Workers
Unspecified

The budget fails to adequately address the needs of unorganized sector workers, who often lack job security and social security benefits.

More Information

Background

The concept of trade unions has its roots in the Industrial Revolution, emerging as a response to poor working conditions and low wages. Early unions faced significant opposition and were often considered illegal. Over time, legislation and social reforms led to the recognition of trade unions as legitimate representatives of workers' interests. In India, the trade union movement gained momentum during the British colonial period, influenced by socialist and communist ideologies. The All India Trade Union Congress (AITUC), founded in 1920, was one of the earliest and most influential trade union federations. Post-independence, trade unions played a crucial role in advocating for labor rights and influencing government policies. The legal framework for trade unions in India is primarily governed by the Trade Unions Act, 1926. This act provides for the registration and regulation of trade unions, defining their rights and responsibilities. The Constitution of India also guarantees certain fundamental rights related to freedom of association, which indirectly supports the functioning of trade unions.

Latest Developments

Recent years have seen a shift in the landscape of trade unions, with increasing concerns about the informalization of labor and the gig economy. The government has introduced the Code on Social Security, 2020, aiming to consolidate and amend the laws relating to social security with the goal to extend social security to all employees and workers in both organised and unorganised sectors. There are ongoing debates about the effectiveness of existing labor laws in protecting workers' rights in the face of changing economic realities. Trade unions are advocating for stronger social safety nets and increased investment in job creation programs. Institutions like the NITI Aayog are also involved in discussions about labor reforms and social security measures. The future outlook for trade unions involves adapting to new forms of employment and advocating for policies that promote inclusive growth and social justice. The government has set targets for increasing social security coverage and improving the quality of employment. However, challenges remain in ensuring effective implementation and addressing the needs of vulnerable workers.

Frequently Asked Questions

1. What are the key concerns raised by trade unions regarding the recent budget?

Trade unions are primarily concerned that the budget neglects unemployment and social security for workers. They argue it lacks concrete measures for job creation and adequate social protection, especially for those in the unorganized sector.

2. What is the Centre of Indian Trade Unions (CITU) and why is their criticism of the budget significant?

The Centre of Indian Trade Unions (CITU) is a major trade union in India. Their criticism is significant because it represents the concerns of a large section of the working class and highlights potential shortcomings in the government's economic policies regarding labor welfare.

3. How does the 'Code on Social Security, 2020' relate to the issues raised by the trade unions?

The 'Code on Social Security, 2020' aims to consolidate social security laws and extend benefits to both organized and unorganized sectors. Trade unions' concerns about the budget's lack of specific allocations for social security highlight the importance of effective implementation of this code to ensure workers' welfare.

4. In your opinion, what reforms are needed to address the concerns of trade unions regarding unemployment and social security?

Addressing trade union concerns requires a multi-pronged approach. This includes increased investment in job-creating sectors, strengthening social security schemes, and formalizing the informal sector to provide better protection for unorganized workers. Regular consultations with trade unions during policy formulation are also crucial.

5. What is the historical background of trade unions in India?

The trade union movement in India gained momentum during the Industrial Revolution as a response to poor working conditions and low wages. Over time, legislation and social reforms led to the recognition of trade unions as legitimate representatives of workers' interests.

6. What are the key facts to remember about trade unions and social security for the UPSC Prelims exam?

For UPSC Prelims, remember that trade unions advocate for workers' rights and social security. Be aware of the 'Code on Social Security, 2020' and its aim to extend social security to all sectors. Also, note the criticism from organizations like CITU regarding the budget's impact on unemployment and social welfare.

Practice Questions (MCQs)

1. Consider the following statements regarding the concerns raised by trade unions about the recent budget: 1. The budget adequately addresses the issue of unemployment through concrete job creation measures. 2. The budget provides specific allocations for universal social security schemes, particularly for unorganized sector workers. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 only
  • C.Both 1 and 2
  • D.Neither 1 nor 2
Show Answer

Answer: D

Statement 1 is INCORRECT: According to the news summary, trade unions criticized the budget for lacking concrete measures to create jobs. Statement 2 is INCORRECT: The unions also raised concerns about the absence of specific allocations for universal social security schemes. Therefore, neither statement is correct.

2. Which of the following statements accurately reflects the stance of the Centre of Indian Trade Unions (CITU) regarding the recent budget?

  • A.CITU praised the budget for its focus on capital expenditure, which they believe will directly translate into immediate job creation for the masses.
  • B.CITU expressed concerns that the budget lacks concrete measures to create jobs and provide adequate social protection for workers.
  • C.CITU lauded the budget's specific allocations for universal social security schemes, particularly for unorganized sector workers.
  • D.CITU remained neutral, acknowledging both the positive and negative aspects of the budget without expressing a clear opinion.
Show Answer

Answer: B

According to the news summary, the Centre of Indian Trade Unions (CITU) highlighted that the budget lacks concrete measures to create jobs and provide adequate social protection. They argued that the government's focus on capital expenditure does not directly translate into immediate job creation for the masses.

3. Which of the following Acts provides the legal framework for the registration and regulation of trade unions in India?

  • A.The Industrial Disputes Act, 1947
  • B.The Minimum Wages Act, 1948
  • C.The Trade Unions Act, 1926
  • D.The Factories Act, 1948
Show Answer

Answer: C

The Trade Unions Act, 1926, provides the legal framework for the registration and regulation of trade unions in India, defining their rights and responsibilities.

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