Strike by over 1,000 workers at Samsung’s Sriperumbudur factory in Tamil Nadu since September 9 is not an isolated event and brings to focus the need for clear laws and standard operating procedures to protect both workers and manufacturers’ interest in the country, per a report by research body Global Trade and Research Initiative (GTRI).
“Since the 1970s, India has witnessed hundreds of strikes in industrial hotspots such as Maharashtra, Gujarat, Haryana, West Bengal, Kanpur, and Punjab. Textiles was the top industry in 1970s and 1980s when India was competing with China. However, prolonged labour strikes have turned cities like Kanpur, Mumbai and many others as graveyard of textiles industry,” the report points out.
Measures such as strong enforcement of labour laws, establishment of mediation systems, union-management dialogue, legal framework for labour compliance, collaboration between Centre and States and intelligence to detect disruptions, could help to address the problem at hand, it suggested.
Labour disputes
Textile strikes and mill closures in Kanpur during the 1970s and 1980s forced many workers into precarious jobs such as rickshaw pulling or construction work. “At that time, India’s textile industry was comparable to China’s, but while China surged ahead to dominate global markets, India’s industry declined,” the report noted.
Similarly, the 1977 jute mill strikes in Kolkata accelerated the decline of the city’s jute industry, once a global leader. More recently, the 2008 Tata Motors Singur protest, opposing land acquisition for a proposed Tata Nano plant, forced the company to relocate to Gujarat, reflecting the adverse impact of labour unrest on industrial projects, it noted.
In Tamil Nadu, a hub of industrial activities, the report cited the strikes in Coimbatore and Tiruppur during the 1980s and 1990s that disrupted textile production. “More recently, strikes at Hyundai in 2007-2008 and Foxconn in 2009 have halted car and electronics manufacturing, showing the persistent influence of labour disputes in the State’s industrial landscape,” it said.
In Gujarat, the 2008 General Motors strike in Halol halted car production for weeks while in 2015, strikes by Maruti-Suzuki suppliers disrupted the automaker’s supply chain.
The report also produced instances of strikes in other States such as Maharashtra, Haryana and Kerala, underlying that everywhere it has mostly hurt both workers and manufacturers interest.
Efficient enforcement
Elaborating on the ways to reduce industrial strikes, the report suggested that the government must enforce labour laws ensuring written contracts, severance pay, and regulated working hours for workers.
This enforcement would provide a safety net for workers and reduce grievances that often lead to strikes, it said.
Creating efficient mediation and arbitration systems would allow disputes to be resolved quickly, preventing strikes, it added
The report also proposed involving worker unions sin discussions on wages and worker welfare but they should not interfere with individual company operations.
“A balanced approach would prevent unions from stalling industrial progress while ensuring worker rights are protected,” it said.