KOCHI: The recent incidents of strike and trade union militancy have brought the spotlight back on Kerala's unfriendly business environment, said the Confederation of Indian Industry (CII) on Monday, adding that the total losses in last month's two-day national strike in the state stood at a whopping Rs 4,400 crore according to its calculation.
In a statement here, the CII urged the Left government to ensure a congenial atmosphere for entrepreneurs by curbing aggressive trade unionism and pointed out that the forced closure of business establishments infringes on the right to livelihood of people besides conveying utter disregard for the common man’s plight.
"Many of the agitation and protests staged by trade unions in Kerala have resulted in unwarranted conflicts at workplaces and led to the closure of many industrial units. Faced with a massive unemployment problem, Kerala cannot afford to lose industries and businesses," said CII. "Trade union hooliganism and militancy have stunted the labour sector, hindered entrepreneurship, and turned Kerala into an industry unfriendly state," it said.
According to its calculation, the total estimated loss to the state's exchequer in the March 28, 29 national strikes stood at Rs 4,400 crore. The sector-wise break-up of the losses as per CII, is the hospitality sector (Rs 400 crore due to cancelled events), manufacturing sector (Rs 1,500 crore), and the retail sector (Rs 2,000 crore) and other miscellaneous (Rs 500 crore).
"This loss is but self-defeating, akin to cutting the branch where one sits, especially of higher impact since it comes at the end of the 2021-22 financial year, when every business establishment was doing their best, to meet their obligations to all stakeholders, employees, shareholders and bankers," the CII said.
The industry body said laws must be enacted to restrict undue interference of trade unions in labour disputes. "The government must create a congenial atmosphere for investments in the state and take measures to end conflicts between businesses and unions," it said.
The CII said while it sympathised with the cause of labour unions, it has a strong objection to the hardship caused to the business community in particular and citizens in general by the methods employed by striking unions.