Every year on May 1st, the world observes International Labour Day - also known as International Workers Day or May Day - to honor the relentless efforts and contributions of workers who form the backbone of every economy. This annual observance on May 1st is more than just a holiday; it's a powerful reminder of the historical struggles and ongoing pursuit of fair treatment, rights, and dignity for workers across the globe. In 2025, this day holds particular significance for India as it stands at the crossroads of historic labour movements, evolving workforce dynamics, and transformative policy reforms. This blog delves deep into the history of International Labour Day, the current challenges faced by Indian workers, and the progressive strides made through government initiatives and new labour laws.

The Historical Roots of International Labour Day

To truly appreciate the essence of International Labour Day, we must journey back to the late 19th century, a period marked by intense industrialization and often exploitative working conditions in many parts of the world. Long working hours, meager wages, and unsafe environments were commonplace, igniting a fervent demand for workers' rights.

The pivotal moment that significantly contributed to the establishment of International Labour Day was the Haymarket Affair in Chicago, USA, in May 1886. Thousands of workers in Chicago launched a massive strike demanding an eight-hour workday, a radical demand at a time when many endured grueling 10- to 15-hour shifts. The peaceful protest turned violent during the Haymarket Affair when a bomb exploded amidst police intervention, resulting in the deaths of seven officers and several civilians. This tragic event became a symbol of the struggle for workers’ rights worldwide.

In 1889, the Second International Socialist Congress declared May 1 as International Workers’ Day to commemorate this sacrifice and to promote labour rights globally. India embraced this spirit in 1923 when Communist leader Singaravelu Chettiar organized the first Labour Day celebration in Chennai, marking the beginning of a sustained workers’ movement in the country.

Why International Labour Day Matters in 2025?

International Labour Day 2025 is more than a holiday; it is a reminder of the progress achieved and the ongoing fight for fair wages, safe working conditions, and social justice. In India, where a vast majority of the workforce is engaged in informal and unorganized sectors, this day highlights the need to protect vulnerable labourers and uplift their socio-economic status.

The day serves as a platform to raise awareness about workers’ rights, promote dignity of labour, and urge policymakers to address persistent issues such as wage disparities, job insecurity, and exploitation. As India’s workforce evolves, International Labour Day 2025 underscores the importance of adapting labour protections to new realities.

Labour Movements In India: A Historical Perspective

India's own labour movement has deep roots, intertwined with the nation's struggle for independence. Even before independence, Indian workers organized themselves to fight against colonial exploitation and demand better working conditions. Key milestones in the early labour movement include the formation of trade unions and participation in various strikes and protests.

Post-independence, the Indian government recognized the importance of labour rights and enshrined several provisions in the Constitution to protect workers' interests. Landmark legislation such as the Factories Act, the Minimum Wages Act, and the Industrial Disputes Act aimed to regulate working conditions, ensure fair wages, and provide mechanisms for resolving industrial disputes.

International Labour Day in India has historically been a day for trade unions and worker organizations to hold rallies, raise awareness about labour issues, and reiterate their demands for better policies and implementation. It serves as a crucial platform to highlight the contributions of the working class to the nation's progress and to advocate for their continued well-being.

The Indian Workforce Today: Challenges Amid Transformation

While India has made significant strides in labour legislation and worker protection, numerous challenges persist in 2025. The sheer size and diversity of the Indian workforce present a complex landscape with varying degrees of formalization and protection.

One of the most pressing issues remains the prevalence of informal employment. A significant portion of India's workforce is engaged in the unorganized sector, often characterized by lack of job security, low wages, absence of social security benefits, and poor working conditions. Integrating this vast informal workforce into the formal economy and extending social protection to them remains a critical challenge.

Wage inequality is another significant concern. Disparities in wages exist across sectors, regions, and genders. Ensuring fair and equitable wages that reflect the cost of living and the skills of workers is essential for inclusive growth and social justice.

The impact of technological advancements and automation on the job market is also a growing concern. While technology can boost productivity, it also poses the risk of job displacement in certain sectors. Skilling and reskilling initiatives are crucial to equip the workforce with the skills needed for the jobs of the future.

Furthermore, issues related to occupational safety and health continue to be a challenge in many industries. Ensuring safe working environments and providing adequate health support for workers is paramount.

The implementation and enforcement of existing labour laws also need strengthening. Gaps in enforcement can lead to violations of workers' rights and hinder the effectiveness of legislative measures.

India’s labour landscape is undergoing rapid transformation, driven by technological advances, globalization, and the rise of the gig economy. While these changes create new opportunities, they also expose workers to fresh vulnerabilities.

The Rise of the Gig Economy Workforce : Another Crucial Aspect of Focus

The gig economy in India is booming, projected to add 90 million jobs and contribute about 1.25% to the GDP by 2030. Platforms facilitating short-term contracts and freelance work have become crucial in sectors like e-commerce, transportation, and digital services. This flexibility benefits many, including women and youth, by providing alternate income streams and integrating diverse talent pools.

However, gig workers often face precarious conditions: lack of job security, absence of formal social security benefits like health insurance and paid leave, and income instability. These challenges highlight the urgent need for regulatory frameworks that recognize and protect gig workers as integral parts of the labour force.

Progressive Steps: Government Initiatives and the New Labour Code 2025

To address these challenges, the Indian government has introduced landmark reforms aimed at modernizing labour regulations and expanding social security coverage.

The e-Shram Portal and Social Security Expansion

The e-Shram portal, launched recently, is a national database of unorganized workers, designed to facilitate targeted delivery of social security benefits. In the Union Budget 2025, the government allocated a record budget to the Ministry of Labour and Employment, emphasizing enhanced welfare schemes for workers, including gig and platform workers.

The New Labour Code 2025: A Paradigm Shift

One of the most significant developments is the introduction of the New Labour Code 2025, which consolidates 29 existing laws into four comprehensive codes:

• Code on Wages: Ensures uniform minimum wages and timely payments.
• Social Security Code: Expands benefits like provident fund, gratuity, and maternity leave to a broader workforce.
• Industrial Relations Code: Simplifies dispute resolution and promotes harmonious employer-employee relations.
• Occupational Safety, Health, and Working Conditions Code: Mandates improved workplace safety standards.

A notable feature is the option for a 4-day workweek, allowing employees to work longer hours (up to 12 hours) over four days instead of five, maintaining the 48-hour weekly cap. This aims to improve work-life balance but raises concerns about potential fatigue and health impacts.

The government plans a phased implementation starting with large enterprises, followed by medium and small businesses, to ease the transition.

Balancing Progress with Worker Protection

While the New Labour Code 2025 promises greater clarity, social security, and flexibility, it also presents challenges:

• The 4-day workweek could increase daily working hours, potentially affecting worker health.
• Easier hiring and firing processes may reduce job security.
• Ensuring that gig workers receive adequate protections remains a work in progress.

The success of these reforms hinges on transparent implementation and active engagement with workers and unions to safeguard rights while fostering economic growth.

Conclusion: International Labour Day 2025 as a Call to Action

As India celebrates International Labour Day 2025, it is an opportune moment to reflect on the journey from the historic labour struggles to the present-day challenges and reforms shaping the workforce. This day reminds us that while progress has been made, continuous efforts are essential to ensure fair wages, safe working environments, and social security for all workers-including those in emerging sectors like the gig economy.

International Labour Day and International Workers Day serve as powerful symbols of solidarity and social justice. For India, the focus must be on inclusive growth that respects the dignity of labour and adapts to the changing world of work. Policymakers, employers, and workers alike must collaborate to realize the vision of a fair, secure, and prosperous labour landscape.