New Labour Codes Under Fire After Catastrophic Blast in Telangana Factory
Mumbai: A devastating explosion at Sigachi Industries’ Unit-II in Jeedimetla, Telangana, on June 30 has claimed the lives of 42 workers and left dozens critically injured, exposing glaring lapses in industrial safety enforcement and triggering nationwide outrage. The charred remains of the reactor at the pharmaceutical manufacturing unit now stand as a grim symbol of what trade unions and farmer organisations are calling “state-sanctioned murder through policy negligence.”
The Confederation of Trade Unions (CTU) and Samyukta Kisan Morcha (SKM) have called for a nationwide general strike on July 9, demanding accountability, justice for the victims, and a complete rollback of the controversial new Labour Codes introduced by the Union Government.
According to a report by Moneycontrol, the reactor explosion—entirely preventable—occurred due to negligence in handling hazardous chemicals and the absence of mandatory safety measures. The tragedy has reignited debates around the government’s deregulation of industrial safety norms and the shift from stringent factory inspections to a corporate self-certification model.
Sigachi Industries’ shares crashed by 8% following the blast, reflecting investor concerns. But for the families of the deceased, this market panic pales in comparison to the loss of life they have suffered. The company, known for manufacturing pharmaceutical intermediates, was operating with hazardous substances without sufficient safety protocols such as blast-proof infrastructure.
In a joint statement, CTU and SKM condemned what they called a “criminal dilution of labour rights and industrial safety under the Modi government.” They pointed out that the new Labour Codes have effectively dismantled key protections under the Workmen’s Compensation Act, making it harder for families to claim relief and reducing corporate liability in industrial accidents.
“The explosion at Sigachi is not an accident; it is a result of policy decisions that prioritised profit over human life. This is industrial manslaughter enabled by the state,” the statement read.
The unions also alleged that the government has consistently refused to ratify and implement critical international safety standards such as the International Labour Organisation’s Conventions C155 and C187, which mandate a safe and healthy working environment. Additionally, there has been no movement towards an Occupational Safety and Health Administration (OSHA)-style regulatory body in India.
CTU-SKM Demands:
1. A Supreme Court-monitored judicial probe into the Sigachi incident.
2. Criminal prosecution of the company owners and responsible government officials.
3. ₹1 crore compensation per deceased worker, jointly paid by Sigachi Industries and the State/Central Governments.
4. Immediate scrapping of the new Labour Codes and reinstatement of the original Workmen’s Compensation Act.
5. Ratification and enforcement of ILO Conventions C155 and C187.
6. Doubling the number of factory inspectors and granting them prosecutorial powers.
Calling the blast the “Sigachi massacre”, CTU and SKM said this tragedy marked a turning point for India’s labour movement. The July 9 strike is set to witness widespread participation from workers across manufacturing, transport, agriculture, and service sectors. Farmers have announced nationwide highway blockades, while unions plan to bring factories and logistics to a halt.
“This government must choose: Corporate profits or workers’ lives? We will shut down the country until the families of the deceased receive justice,” said Rajan Kshirsagar, senior leader of the All India Kisan Sabha (AIKS).
He added, “The Sigachi explosion is the direct consequence of Modi’s Labour Codes. When inspections are gutted and compensation laws are shredded, workers die. The July 9 strike will echo the fury of every family forced to bury their loved ones. We demand criminal liability for this massacre.”
The nationwide strike is expected to become a major flashpoint in the debate around labour rights, corporate regulation, and worker safety in India. All eyes are now on the Union Government’s response as the countdown to July 9 begins.
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