The month-long workers’ strike at the Samsung plant in Tamil Nadu is reminiscent of the 1970s and 1980s, when employee protests were a constant irritant in the country’s industrial hubs. With the politically connected labour unions always in a battle-mode, such strikes in the pre-liberalisation era led to the downfall of several manufacturing hubs in the country such as Kanpur, Kolkata and Punjab. Even the textile mills of Mumbai were once notorious for their militant labour unions. We now know how some of these manufacturing hubs have been in complete disarray as promoters of companies shifted their base to relatively more business-friendly centres such as Gujarat, Tamil Nadu, and Karnataka – even though these states had their own share of labour problems. The strike in the Samsung factory in TN is for higher average salary and better working conditions. The workers have been complaining of low average salary of Rs 25,000 a month and long working hours in unfavourable working conditions. They are demanding fixed 8-hour shifts and a hike in average salary to Rs 36,000 a month. The workers have also demanded more frequent breaks without being penalised by the management.
While these demands are not unfair, labour unions cannot be allowed to disrupt day-to-day operations of the factory. However, poor working conditions remain an issue of constant debate. A few months ago, a similar issue erupted in Amazon’s Manesar facility in Haryana, where workers complained of long working hours with little or no breaks and low salaries. Similar issues came to the fore when a young chartered accountant in EY collapsed and died allegedly unable to bear the work culture.
While the government (Centre or the state) has a limited role to play in matters like these, it can ensure effective labour laws are in place, and chalk out a better mediation system to diffuse labour disputes. The Centre and state government should collaborate to timely douse the fire of labour dispute and prevent it from spreading to other states. There is a need for political will to put in place labour law reforms which are balanced and not tilted too much in favour of the corporates or employees. Promoters must also ensure they have the trust of employees and should not be seen as anti-workers. At a time when India is striving hard to expand its manufacturing base, resolving labour unrest with minimal disruption is the way forward.
