The Global Trade Research Initiative (GTRI) has urged the Indian government to develop clear laws and standard operating procedures to protect workers and the interests of companies, aiming to foster a more stable industrial environment in the country.
In a recent statement, GTRI founder Ajay Srivastava emphasised the need for India to prioritise the protection of workers' rights while maintaining industrial stability to reduce the frequency of strikes.
He warned that addressing labour disputes before they escalate is crucial, noting, “Industrial strikes have led to factory closures and job losses in India for decades.”
Srivastava referenced the ongoing strike by over 1,000 workers at Samsung's Sriperumbudur factory in Tamil Nadu, which began on September 9, as a significant example of the issue.
GTRI proposed a seven-step plan, which includes the enforcement of existing labour laws, establishing mediation systems, promoting dialogue between unions and management, creating a legal framework for labour compliance, enhancing collaboration between central and state governments, and developing intelligence systems to detect potential disruptions.
The think tank highlighted the importance of enforcing labour laws to ensure written contracts, severance pay, and regulated working hours for employees. “This enforcement would provide a safety net for workers and reduce grievances that often lead to strikes,” the organisation stated.
Additionally, GTRI advocated for the creation of efficient mediation and arbitration systems to resolve disputes swiftly, preventing them from escalating into large-scale strikes. The think tank suggested that these systems be managed by independent bodies to ensure fairness.
The initiative also called for union involvement in discussions about wages and worker welfare, cautioning against interference in individual company operations.
“A balanced approach would prevent unions from stalling industrial progress while ensuring workers' rights are protected,” GTRI added, noting that a clear legal framework outlining manufacturers' obligations for labour compliance and worker welfare would help create a more predictable business environment.
Srivastava pointed out that since the 1970s, India has experienced hundreds of strikes in industrial hotspots such as Maharashtra, Gujarat, Haryana, West Bengal, Kanpur, and Punjab.
He lamented the impact of prolonged strikes on the textiles industry, which was once a leading sector in India but has suffered significantly due to labour disputes, leading cities like Kanpur and Mumbai to become “graveyards” for the industry.
Drawing a comparison with China, Srivastava noted that the All-China Federation of Trade Unions (ACFTU) collaborates closely with the government to manage worker grievances, thus preventing widespread unrest.
He contrasted this with India's trade unions, which he argued are often tied to political parties, resulting in strikes driven by political motives.
By implementing GTRI’s recommendations, India could reduce the occurrence and impact of labour strikes, fostering a more stable industrial environment that benefits both workers and businesses.
Follow us
