[India] Karnataka labour laws changed following foreign company lobbying

[India] Karnataka labour laws changed following foreign company lobbying
14 Mar 2023

In India, major labour law changes have been made by the BJP state government in Karnataka following lobbying from Foxconn, the Taiwanese company that manufactures Apple phones, Presswire 18 reports.

The success of the foreign company’s lobbying means production can now take place in two shifts in the state, in a similar practice to the company’s main manufacturing unit in China.

The Karnataka state assembly reportedly passed a labour law on March 1 that allows production in 12-hour shifts and permits women to work at night.

In addition to other changes, it increased the valid working hours of an employee from nine to 12 for four consecutive days before taking three days off. Allowable overtime hours were increased from 75 to 145 over a period of three months, however, maximum working hours have been capped at 48 hours per week.

The law also allows women to work between 7 pm and 6 am, subject to employers implementing certain safety measures; such as equipping transport facilities with CCTVs and GPS.

The new laws are reportedly expected to encourage more international companies to set up manufacturing units in Karnataka but past labour unrest at the Wistron unit in Kolar demonstrates that flouting labour laws can lead to striking workers.

According to a government inquiry report, striking employees were not paid in line with the hours they worked.

According to Financial Times reporting, Karnataka amended its labour law after “a lot of input” from Indian industry lobby groups and foreign companies, including Foxconn and Apple. It is not known whether any labour groups or trade unions were consulted before making these changes.

Foxconn currently manufactures iPhones at a plant in Tamil Nadu, it has engaged with both state governments to establish new units in Karnataka and Telangana.

Electronics and IT Minister Rajeev Chandrasekhar announced that Apple phones will be manufactured in a new 300-acre factory in Karnataka. The company, however, reportedly denied that it has made any firm commitment or final plans to manufacture Apple devices in these states.

Apple’s intention to expand its India operations is playing a big part in labour protests at Foxconn’s biggest factory in China’s Zhengzhou and is playing out against a backdrop of supply disruptions. The protests were prompted by problems such as delayed bonus payments, poor working conditions and lack of food supplies.

Apple’s iPhones are reportedly assembled in India at plants operated by two rival Taiwanese contract manufacturers Pegatron and Wistron.


Source: Presswire 18

(Link via original reporting)

In India, major labour law changes have been made by the BJP state government in Karnataka following lobbying from Foxconn, the Taiwanese company that manufactures Apple phones, Presswire 18 reports.

The success of the foreign company’s lobbying means production can now take place in two shifts in the state, in a similar practice to the company’s main manufacturing unit in China.

The Karnataka state assembly reportedly passed a labour law on March 1 that allows production in 12-hour shifts and permits women to work at night.

In addition to other changes, it increased the valid working hours of an employee from nine to 12 for four consecutive days before taking three days off. Allowable overtime hours were increased from 75 to 145 over a period of three months, however, maximum working hours have been capped at 48 hours per week.

The law also allows women to work between 7 pm and 6 am, subject to employers implementing certain safety measures; such as equipping transport facilities with CCTVs and GPS.

The new laws are reportedly expected to encourage more international companies to set up manufacturing units in Karnataka but past labour unrest at the Wistron unit in Kolar demonstrates that flouting labour laws can lead to striking workers.

According to a government inquiry report, striking employees were not paid in line with the hours they worked.

According to Financial Times reporting, Karnataka amended its labour law after “a lot of input” from Indian industry lobby groups and foreign companies, including Foxconn and Apple. It is not known whether any labour groups or trade unions were consulted before making these changes.

Foxconn currently manufactures iPhones at a plant in Tamil Nadu, it has engaged with both state governments to establish new units in Karnataka and Telangana.

Electronics and IT Minister Rajeev Chandrasekhar announced that Apple phones will be manufactured in a new 300-acre factory in Karnataka. The company, however, reportedly denied that it has made any firm commitment or final plans to manufacture Apple devices in these states.

Apple’s intention to expand its India operations is playing a big part in labour protests at Foxconn’s biggest factory in China’s Zhengzhou and is playing out against a backdrop of supply disruptions. The protests were prompted by problems such as delayed bonus payments, poor working conditions and lack of food supplies.

Apple’s iPhones are reportedly assembled in India at plants operated by two rival Taiwanese contract manufacturers Pegatron and Wistron.


Source: Presswire 18

(Link via original reporting)

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