BS EDIT: Strike over: Paving the way for better labour relations

By Business StandardPublished On Oct 18, 2024

Strike ends after 37 days

The 37-day Samsung strike ends after talks with workers, management, and Tamil Nadu govt. Key issues resolved include wages, workloads, with union recognition pending

Union recognition

Samsung’s refusal to recognise the Workers' Union was key. While wage and work conditions were resolved, the union issue now awaits a Madras High Court verdict

Impact on manufacturing landscape

Industrial disputes like this can damage India’s image as a manufacturing hub.

Frequent conflicts deter investment and complicate efforts to establish India as a global manufacturing destination

The ‘multi-plant’ strategy

Research by Arvind Subramanian shows firms spread production across multiple plants to avoid disputes, yet this limits economies of scale and hinders export competitiveness

Contract labour dilemma

The rise of contract labour offers firms flexibility but weakens bargaining power, leaving many out of key negotiations. Contract workers at Sriperumbudur didn't strike

Reforming Labour Laws

Stable labour relations are vital for large-scale manufacturing in India. Labour law reforms need timely implementation and state consensus to attract more investment