Recognised unions support collective negotiations, wage settlements and industrial harmony across manufacturing facilities
NEW DELHI (India CSR): Asian Paints Limited reported strong union representation among its permanent workers in FY 2025-26, with 1,521 out of 1,722 permanent workers being part of recognised associations or unions. This means 88.3% of the company’s permanent workers were covered under recognised unions or associations during the financial year. The disclosure, made in the company’s Business Responsibility and Sustainability Report, gives a clear view of employee and worker representation in one of India’s leading paint and décor companies. While union membership among workers remained high, membership among permanent employees was comparatively low at 1.8%.
Asian Paints reported that out of 9,440 permanent employees, 168 were members of recognised associations or unions in FY 2025-26. Among male permanent employees, 161 out of 8,440 were part of such associations or unions, representing 1.9%. Among female permanent employees, 7 out of 1,000 were part of recognised associations or unions, representing 0.7%.
The picture is different among permanent workers, where union representation remains a significant feature of workforce relations. Out of 1,714 male permanent workers, 1,521 were part of recognised unions or associations, representing 88.7%. The company reported 8 female permanent workers during the year, with no union membership disclosed in that category.
Union Membership Sees Slight Decline Among Workers
Compared with FY 2024-25, union membership among permanent workers saw a slight decline. In FY 2024-25, 1,537 out of 1,715 permanent workers were part of recognised associations or unions, representing 89.6%. In FY 2025-26, the figure stood at 88.3%. Among male permanent workers, the share declined from 90.0% in FY 2024-25 to 88.7% in FY 2025-26. Among permanent employees, the overall share rose marginally from 1.7% in FY 2024-25 to 1.8% in FY 2025-26.
This indicates that union participation remains largely concentrated among factory workers rather than managerial or office-based employees. This is common in manufacturing companies, where unions traditionally play an important role in wage negotiations, working conditions, safety concerns and productivity discussions.
Trade Unions as Partners in Industrial Relations
Asian Paints has described trade unions across its manufacturing facilities as key partners in collective negotiations. The company stated that these unions contribute to stable industrial relations and seamless operations. The company’s approach shows that union engagement is not presented merely as a compliance requirement. Instead, it is positioned as part of workforce governance and industrial harmony.
According to the company, union engagements are generally conducted every three years, or as defined by the settlement cycle. These discussions focus on finalising productivity-linked wage agreements. The objective is to balance employee welfare with the organisation’s financial viability.
This is an important point in the context of Indian manufacturing. Productivity-linked wage agreements have become a preferred model in many large factories because they connect workforce benefits with operational performance. Such agreements can help reduce disputes when they are negotiated transparently and implemented fairly.
Why Union Representation Matters
Employee unions and worker associations play an important role in industrial relations. They provide a collective voice to workers, especially in manufacturing environments where issues such as wages, safety, working hours, benefits, welfare facilities and workplace dignity are closely linked to productivity and morale. At a large company like Asian Paints, which operates multiple manufacturing facilities, a structured relationship with unions can help maintain consistency across plants. It can also help ensure that worker concerns are addressed through formal dialogue instead of informal conflict.
With 88.3% of permanent workers covered by recognised unions or associations, collective bargaining remains a central feature of worker relations.Â
The company’s disclosure suggests that permanent workers continue to rely strongly on union representation. With 88.3% of permanent workers covered by recognised unions or associations, collective bargaining remains a central feature of worker relations. For investors and ESG observers, such disclosures are important because labour relations are now seen as part of responsible business conduct. Strong union engagement, fair grievance redressal and transparent wage settlements contribute to social sustainability and operational stability.
Workforce Governance and Compliance
The report said its workforce governance approach maintains consistent labour, safety and compliance standards across all plants. Permanent employees are supported through structured HR policies, performance management systems and recognised unions that promote transparent dialogue and industrial harmony. The company also reported that contractual workers operate within a defined governance framework. Audits and due diligence processes are used to ensure compliance with labour, safety and welfare standards.
This is relevant because many manufacturing companies depend not only on permanent workers but also on contractual workers. Ensuring that contract workers have access to statutory benefits, safety systems and welfare support has become an important aspect of ESG reporting. Asian Paints also disclosed efforts to improve awareness among contract workers regarding healthcare and welfare benefits. Through ESIC awareness sessions, workers were guided on healthcare, maternity and sickness benefits, along with related claim processes. The company also extended support to improve access to schemes under the Haryana Labour Welfare Fund.
Freedom of association is a key labour right. It allows workers to organise, represent collective interests and participate in dialogue with management.
Grievance Redressal Mechanism
Asian Paints has reported grievance redressal mechanisms for permanent workers, other than permanent workers, permanent employees and other than permanent employees. For permanent workers, grievances received at plant premises are recorded in appropriate registers. Workers can also raise concerns through the company’s ethics portal, toll-free number, email or letter addressed to the Ethics Committee at the registered office.
For permanent employees, grievances can be raised with reporting managers or HR business partners. Employees can also use the ethics portal, toll-free number, email or written communication to the Ethics Committee. The availability of multiple grievance channels is important for workplace trust. A grievance system is effective when employees and workers feel safe to report concerns and believe that complaints will be addressed without retaliation.
Human Rights and Freedom of Association
The company’s human rights framework also reflects the importance of responsible labour practices. Asian Paints says its Code of Conduct reinforces commitments to equal opportunity, a harassment-free workplace, freedom of association, safe working conditions and zero tolerance for forced labour, child labour, bribery and unethical conduct.
Freedom of association is a key labour right. It allows workers to organise, represent collective interests and participate in dialogue with management. For manufacturing companies, this right is closely connected with responsible workplace governance and social accountability.
Reading the Numbers
The most important takeaway from Asian Paints’ FY 2025-26 disclosure is that unionisation is strong among permanent workers but limited among permanent employees.
Union Membership in FY 2025-26
| Category | Total Employees / Workers | Members of Recognised Union / Association | Share |
|---|---|---|---|
| Total Permanent Employees | 9,440 | 168 | 1.8% |
| Male Permanent Employees | 8,440 | 161 | 1.9% |
| Female Permanent Employees | 1,000 | 7 | 0.7% |
| Total Permanent Workers | 1,722 | 1,521 | 88.3% |
| Male Permanent Workers | 1,714 | 1,521 | 88.7% |
| Female Permanent Workers | 8 | 0 | 0% |
The data shows that Asian Paints’ union engagement is primarily a worker-level framework, especially at manufacturing facilities. This is consistent with the role of unions in collective bargaining and productivity-linked wage agreements.
(India CSR)
