Auto sector likely to be public utility in Tamil Nadu

This will prevent workers to go on flash strikes

To prevent flash strikes, the Tamil Nadu government is planning to bring the automobile industry under “public utility”.

The sector has welcomed the move. The Centre of Indian Trade Unions has opposed the proposal.

The Automobile and Auto Components Policy of 2014, unveiled by Chief Minister J Jayalalithaa recently, says, “...target is to double automobile and components exports from Tamil Nadu by 2016 and make the state numero uno in Asia in the automobile and components, and make Chennai as one of the top five centres in the world for the industry.”

The new policy document said the automobile industry would be declared a public utility under the Industrial Disputes Act, 1947, to prevent flash strikes.

In recent times Maruti, Mahindra and Mahindra, Honda Motorcycle & Scooter, Hero Honda, Hyundai, General Motors, Apollo Tyres, MRF and others across the country had faced labour unrest.

In Tamil Nadu, a senior official of auto-parts manufacturer Pricol was beaten to death by angry employees in Coimbatore in 2009.

Hyundai Motor India Managing Director & CEO B S Seo said the State Government's plan further underscores the government’s intent to make Tamil Nadu a preferred auto manufacturing destination. This announcement is bound to promote a more harmonious work culture to sustain growth of the state and benefit all stake holders in this industry.

However, A Soundararajan, general secretary, CITU and a sitting Member of State Legislative Assembly, said that “it is wrong move by the Government and said CITU strongly objected for the state Government's proposal and will protest against it”.

It may be noted, CITU opposed the States' move to bring the auto sector under 'Public Utility',in 2012, after strike broke out in Hyundai. The sector was brought under the 'public utility' space but for a period of six months only.

Aditya Narayan Mishra, president – staffing, Randstad India, which offers HR services, including major MNCs across various sectors including automobile, said that “this may not have a huge impact. Need of the hour is to improve the industrial environment, relationship between the employer and employees”.

Good news for the companies is if the industry comes under the Act, they wont be caught unaware to face the situation, said Mishra, who noted the Act also has lot of provisions which gives adequate rights to both the parties to deal with the dispute.

The state government is also contemplating, whether it can give permission for 24X7 (three shifts) operations for the sector. Along with employment of women in the night shifts, flexibility in employment conditions including working hours for women and shorter or longer timings and hiring of contract workers.

gSubject to applicable laws as far as possible, the Government will consider giving the permission,” it was said.

The State administration has set a target to create additional employment for about five lakh persons by 2015 in automobile and components industry.

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