New Delhi:With Samsung employees' strike in Tamil Nadu demanding better payment and union recognition, the Global Trade Research Initiative (GTRI) has suggested the government frame clear laws and standard operating procedures. GTRI emphasised that such measures are essential to protect workers' rights while safeguarding company interests, ultimately fostering a more stable industrial environment in the country.
According to an economic think tank’s report, the strike by over 1,000 workers at Samsung's factory in Sriperumbudur, Tamil Nadu, which began on September 9, is part of a larger trend. Industrial strikes have resulted in factory closures and job losses across India for decades. Since the 1970s, numerous strikes have occurred in key industrial regions like Maharashtra, Gujarat, Haryana, West Bengal, Kanpur and Punjab. In the 1970s and 1980s, textiles were the leading industry as India competed with China. However, prolonged labour strikes have turned cities like Kanpur and Mumbai into graveyards for the textile industry.
While these strikes are often sparked by demands for better wages and working conditions, they can unintentionally harm the very workers they aim to protect. For example, the textile strikes and mill closures in Kanpur during the 1970s and 1980s pushed many workers into unstable jobs, such as rickshaw pulling or construction. At that time, India’s textile industry was competitive with China’s, but while China advanced to dominate global markets, India’s industry faced a decline.
China and India
It also says that China's labour environment is markedly different from India's. The All-China Federation of Trade Unions (ACFTU), China's sole trade union, collaborates closely with the government to address worker grievances, which helps prevent widespread unrest. In contrast, trade unions in India are often tied to political parties, resulting in strikes that are frequently motivated by political agendas.
Measures to Prevent Strikes
The GTRI emphasised that the government must enforce labour laws that ensure written contracts, severance pay and regulated working hours for the workforce. This implementation would create a safety net for employees and reduce grievances that often lead to strikes. Additionally, establishing effective mediation and arbitration systems would enable quick resolution of disputes, preventing them from escalating into large-scale strikes. These systems should be managed by independent bodies to ensure fairness.
According to GTRI, while unions should be involved in discussions about wages and worker welfare, they should not interfere with the day-to-day operations of individual companies. A balanced approach would safeguard worker rights while preventing unions from hindering industrial progress. Furthermore, a clear legal framework outlining manufacturers' obligations regarding labour compliance and worker welfare would foster a more predictable business environment. Companies that adhere to these laws should expect protection from unnecessary labour disruptions.
GTRI also underscored the importance of collaboration between Central and State governments to proactively tackle labour disputes in large companies. This teamwork could help prevent strikes from spreading across different regions and industries. In our increasingly globalised economy, concerns about industrial espionage and disruptions from external actors are on the rise. Creating intelligence units to monitor and identify these disruptions could help reduce outside influences on labour unrest, fostering a more stable industrial environment.
History of Strikes
GTRI has analysed several major labour strikes in India that have significantly impacted key industries and regions, leaving enduring economic scars.
Kanpur once celebrated as the "Manchester of the East," experienced a series of strikes that has contributed to the decline of its once-thriving textile, leather and defence sectors. The textile mill strikes of 1977-78 lasted for months, resulting in widespread unemployment and marking the beginning of Kanpur's industrial downturn. Later strikes, such as the 1981 Elgin Mill Strike and the 1992 Swadeshi Cotton Mill Strike, further deepened the city’s economic challenges.
In West Bengal, labour activism has a rich history, with the 1977 jute mill strikes in Kolkata standing out. These strikes hastened the decline of the city’s jute industry, which was once a global leader. More recently, the 2008 protests against land acquisition for the Tata Nano plant in Singur forced the company to relocate to Gujarat, showcasing how labour unrest can derail significant industrial projects.
Tamil Nadu, another vital industrial hub, has also faced disruptive strikes. In the 1980s and 1990s, protests in Coimbatore and Tiruppur significantly impacted textile production. More recently, strikes at Hyundai in 2007-2008 and Foxconn in 2009 brought car and electronics manufacturing to a standstill, highlighting the ongoing influence of labour disputes in the region.
Gujarat, with its diverse industrial landscape, has similarly experienced unrest. The 1974 textile workers' strike in Ahmedabad led to mass layoffs and the closure of several mills, while the 2008 General Motors strike in Halol halted car production for weeks. In 2015, strikes by Maruti Suzuki suppliers disrupted the automaker’s supply chain, underscoring the persistent role of unions in the state’s industrial sectors.
In Maharashtra, the 1982-1983 Bombay Textile Strike, led by union leader Datta Samant, had a significant impact. Lasting 18 months, it crippled the city's textile industry and resulted in widespread unemployment as many mills shut down. This event marked a turning point in Mumbai's once-vibrant textile sector. A decade later, the Hindustan Lever strike in Sewri lasted four years, with workers protesting modernisation efforts they feared would lead to job losses, reflecting the ongoing tension between industrial progress and job security.
In Haryana, the Maruti Suzuki Workers' Union strike at the Manesar plant in 2011-2012 garnered national attention due to its violent aftermath, including the death of a manager. This strike halted production for weeks and highlighted the fragile state of labour relations in India's automotive sector, emphasizing the need for better conflict resolution mechanisms between workers and management.
Kerala, known for its strong labour movements, has also seen significant strikes that disrupted key industries. The 1984 strike at the Fertilisers and Chemicals Travancore (FACT) plant lasted weeks and impacted fertilizer production as workers protested for job security and better wages. Similarly, the 1994 strike at Hindustan Newsprint Limited in Velloor halted paper production, affecting the local publishing industry. These strikes underscore the challenges faced by Kerala's traditional industries in adapting to modernization.
Finally, Punjab, home to major textile and bicycle manufacturing industries, has also encountered significant labor disruptions. Strikes in Ludhiana's textile sector during the 1980s and protests at bicycle manufacturers like Hero Cycles and Avon Cycles in 1998 and 2010 disrupted production, illustrating the negative effects of labor unrest on industrial growth and modernization efforts.
Timeline of Strikes and Major Strikes
Maharashtra
1 1982: Bombay Textile Strike, Mumbai
2 1993: Hindustan Lever Strike, Sewri, Mumbai
3 1989: Air India Employees Strike, Mumbai
4 1992: Mumbai Port Trust Strike, Mumbai
5 1997: Larsen & Toubro (L&T) Workers Strike, Mumbai
6 2013: Mumbai Airport Workers Strike, Mumbai
7 2019: Public Transport Strikes, Mumbai
Haryana
1 2011-2012: Maruti Suzuki Manesar Strikes, Manesar
Kerala
1 1984: FACT Employees Strike, Kochi
2 1994: Hindustan Newsprint Limited Strike, Velloor, Kottayam
3 1996: Alappuzha Coir Workers Strike, Alappuzha
4 2011: Mavoor Rayon Factory Strike, Mavoor, Kozhikode
5 2015: Kochi Port Strike, Kochi
6 2020: Kerala Plantation Workers Strike, Various districts
Uttar Pradesh (Kanpur)
1 1977-78: Textile Mill Strikes, Kanpur
2 1981: Elgin Mill Strike, Kanpur
3 1986: Lal Imli Mill Strike, Kanpur
4 1990s: Leather Industry Strikes, Kanpur
5 1992: Swadeshi Cotton Mill Strike, Kanpur
6 2000s: Strike at Kanpur Ordinance Factories, Kanpur
7 2008: LML Scooter Factory Strike, Kanpur
8 2012: Ordinance Factory Strike, Kanpur
9 2019: Textile Mill Workers Protests, Kanpur
West Bengal (Kolkata)
1 1974: Great Indian Railway Strike, Kolkata
2 1977: Jute Mill Strikes, Kolkata
3 1980: CESC Workers Strike, Kolkata
4 1983: Jute Industry Strikes, Kolkata
5 1990: Haldia Petrochemicals Strike, Haldia
6 1992: Calcutta Port Strike, Kolkata