One key takeaway from the strike at Samsung’s Perumbudur factory is that manufacturers who follow the law and pay taxes expect a stable environment without unnecessary disruptions.

The government needs to establish a clear framework to prevent industrial unrest and strikes, which have led to factory closures and job losses for decades. Since the 1970s, India has experienced hundreds of labour strikes across key sectors like textiles, engineering, automobiles, and electronics in major industrial regions such as Maharashtra, Gujarat, Haryana, West Bengal, Kanpur, and Punjab.

While strikes address issues like low wages, poor working conditions, and fears of job losses from modernisation, they have sometimes hurt the very workers they aim to protect. For example, during the textile strikes and mill closures in Kanpur in the 1970s and 1980s, many workers were forced to take on jobs like rickshaw pulling or construction work.

At that time, India’s textile industry was on a par with China’s, but while India declined, China quickly became the global leader.

China does not worry about strikes as it has only one trade union, the All-China Federation of Trade Unions (ACFTU). It works closely with the government to manage worker grievances and avoid unrest. So, strikes, when they happen, are under control. In contrast, India’s trade unions are often tied to political parties, with strikes sometimes driven by political motives.

Major strikes

It’s important to remember major labour strikes that severely affected key industries and regions.

In Maharashtra, the Bombay Textile strike of 1982-1983, led by union leader Datta Samant, lasted 18 months and crippled the city’s textile industry, leading to mass unemployment as mills shut down. This strike marked the collapse of Mumbai’s once-flourishing textile sector. A decade later, in 1993, the Hindustan Lever strike in Sewri lasted four years. Workers protested modernisation plans that they feared would lead to job cuts, highlighting ongoing tensions between industrial progress and employment security.

In Haryana, the Maruti Suzuki Workers’ Union strike at the Manesar plant during 2011-12 drew national attention due to its violent nature, including the death of a manager. This strike lasted several weeks and halted production, demonstrating the fragile nature of labour relations in India’s critical auto industry.

In Kerala, known for its strong labour movements, the 1984 FACT employees strike, lasting several weeks, disrupted fertilizer production over job security and wage issues. Similarly, the Hindustan Newsprint Ltd strike in 1994 halted production at the Velloor factory, affecting the local publishing industry. These strikes underscored the economic challenges facing traditional sectors in the State as they grappled with modernisation.

In Kanpur, Uttar Pradesh, once called Manchester of the East, a series of major strikes contributed to the decline of the city’s once-booming textile, leather, and defence industries. The 1977-78 Textile Mill strikes, lasting several months, led to large-scale unemployment and the beginning of Kanpur’s industrial decline. Later strikes, such as the 1981 Elgin Mill strike and the 1992 Swadeshi Cotton Mill strike, culminated in the collapse of Kanpur’s manufacturing sector.

West Bengal, another State with a strong history of labour activism, saw the 1977 Jute Mill strikes in Kolkata, which accelerated the decline of the city’s once-dominant jute industry. The 2008 Tata Motors Singur protest, which opposed land acquisition for a proposed Tata Nano plant, ultimately forced the company to relocate to Gujarat.

In Tamil Nadu, strikes in the 1980s and 1990s in Coimbatore and Tiruppur disrupted textile production. More recently, strikes at Hyundai in 2007-08, Foxconn in 2009, and the ongoing Samsung strike have halted car and electronics manufacturing, highlighting the continued impact of labour disputes on the state’s industrial sector.

Gujarat, with its diverse industrial base, has also faced significant strikes. The 1974 Textile Workers’ Strike in Ahmedabad led to mass lay-offs and the closure of several mills, while the 2008 General Motors strike in Halol halted car production for weeks. More recently, in 2015, strikes by Maruti-Suzuki suppliers disrupted the automaker’s supply chain, reflecting the continued influence of labour unions in Gujarat’s industrial sectors.

Punjab’s textile and bicycle manufacturing industries have been similarly affected. Strikes in Ludhiana’s textile sector in the 1980s and bicycle manufacturing strikes at Hero Cycles and Avon Cycles in 1998 and 2010 disrupted production and highlighted the adverse impact of labour disputes on employment and modernisation efforts.

Strategy to reduce strikes

It’s essential to prioritise the protection of workers’ rights and improve working conditions while ensuring stability. Key steps include enforcing labour laws that ensure written contracts, severance pay, and regulated working hours. It is also critical to establish mediation and arbitration systems to resolve disputes quickly before they escalate.

The state can involve unions in discussions on wages and worker welfare, but unions should not interfere with individual company operations.

It is essential to have a clear legal framework outlining manufacturers’ obligations regarding labour law compliance and worker welfare. If companies comply with these laws and pay taxes, the state must resolve any labour issues. If the government believes unions should be part of management or formally recognised by factories, it should pass laws to ensure transparency for future investors.

Collaboration between Central and State governments is necessary to proactively address labour disputes in large firms.

Industrial espionage and disruption are routine global operations. Intelligence units should be set up to detect disruptions caused by external actors.

Finally, bipartisan support from all political parties is crucial, as significant trade unions are often affiliated with political parties.

Governments hesitate to reform labour laws out of fear of losing votes, even though these laws only impact 10 per cent of workers in the organised sector. Meanwhile, unions and the government do little to improve conditions for 90 per cent of workers in the unorganised sector. Despite the challenges, factory workers are still better off than those in unorganised jobs.

The writer is founder, Global Trade Research Initiative