“Industries Stalled Due to Trade Unions, Many Units Shut Down” — Serious Warning by CJI Surya Kant

Brake on India’s Industrial Growth? CJI Surya Kant’s Direct Criticism of Trade Unions

New Delhi – Chief Justice of India (CJI) Surya Kant, during a statutory hearing in the Supreme Court on January 29, 2026, made strong observations against trade unions, stating that unionism has slowed down India’s industrial growth and has led to the closure of several industrial units.

These remarks were made in the context of a public interest litigation related to minimum wages and welfare measures for domestic workers. The petition had sought the inclusion of domestic workers under labour laws to ensure them basic security and fair wages.
CJI Surya Kant observed that the aggressive approach adopted by trade union leadership and the frequent protests and strikes create serious disruptions in industrial operations. According to him, these actions have had adverse consequences, including the shutdown of industrial units and a decline in employment opportunities. He remarked, “These ‘flag-bearing’ trade unions have caused traditional industries across the country to shut down, bringing industrial growth to a standstill.”

During the hearing, the Chief Justice also acknowledged that exploitation of workers does exist. However, he emphasized that instead of imposing rigid regulations, more effective solutions would include spreading awareness about individual workers’ rights, promoting skill development, and implementing other reform-oriented measures.

In response, trade unions and labour organisations strongly objected to the Chief Justice’s remarks. They argued that trade unions are constitutionally recognised institutions that play a vital role in protecting workers’ rights and improving their living conditions. According to them, blaming trade unions for industrial slowdown is unjust and ignores the structural and policy-related challenges faced by industries.
Furthermore, while delivering its final observations on the petition, the Supreme Court stated that mandating minimum wages for domestic workers through judicial directions would not be appropriate. The Court clarified that such decisions fall outside the scope of judicial authority and must be taken by the government or legislature. As a result, the Court refrained from issuing binding directions on the matter.

These developments have triggered a broader national debate on labour reforms, workers’ rights, and industrial policy. Various stakeholders and organisations have since put forward differing perspectives, highlighting the need to strike a balance between protecting workers’ welfare and ensuring sustainable industrial growth.