Mass layoffs at US-based company's Kerala units trigger political storm
Mass layoffs at the Kerala units of a US-based firm have snowballed into a political controversy, with the state's labour minister, Bindu Krishna, vowing strong worker protection. The incident has ignited debates over the central government's new labour codes.
Details of the layoffs
Over 500 employees were terminated from the company's facilities in Kochi and Thiruvananthapuram, according to union sources. The firm, which operates in the technology sector, cited restructuring as the reason. However, unions allege the layoffs violate the new labour codes that mandate prior government approval for such actions.
Political reactions
Kerala Labour Minister Bindu Krishna stated, "The state government will strongly protect the workers. We are examining the legality of these layoffs under the new labour laws." The opposition has accused the state of failing to enforce the codes effectively. The central government, however, maintains that the codes provide flexibility while ensuring worker rights.
Impact on workers and economy
Affected employees have staged protests outside the company's offices, demanding reinstatement. The layoffs come amid a slowdown in Kerala's IT sector, raising concerns about job security. Economists warn that such incidents could deter foreign investment if labour disputes escalate.
