Tamil Nadu: DMK Government Beats A Hasty Retreat On Amendment To Factories Act After Trade Unions Threaten Massive Stir

Facing stiff opposition from political allies and left-wing trade unions, Tamil Nadu Chief Minister M.K. Stalin on Monday (April 24) announced that the recently enacted Factories (Tamil Nadu Amendment) Act, 2023, will be kept in abeyance.

"Based on the views expressed by the trade unions and political parties, the implementation of The Factories (Tamil Nadu Amendment) Bill, 2023 is put on hold." the CM said in a statement.

The CM's decision to put the labour law reforms on hold came after a group of DMK ministers met the representatives of trade unions, including the union affiliated with the ruling DMK.

During the meeting with the ministers, the representatives of trade unions strongly opposed the provisions of The Factories (Tamil Nadu Amendment) Bill, 2023

The trade unions threatened to launch a massive agitation across the state if the government did not withdraw the amendment immediately. Rejecting an offer by the ministers to introduce safeguards, the unions also made it clear to the government that they were unwilling to accept anything less than a complete withdrawal of the amendment.

The explanation given by the ministers that the amended clauses are in favour of the workers and permission to fix flexible working hours would be given only to specific industries was not accepted by the union's representatives.

TN Move Driven By Labour Law Reforms in Neighbouring Karnataka

In February this year, the ruling BJP government in Karnataka passed the Factories (Karnataka Amendment) Bill, 2023, in the legislative assembly, allowing for increasing the number of hours of work from the existing nine to up to 12, inclusive of rest intervals, subject to a maximum of 48 hours in any week. The bill also allowed female employees to be employed on night shifts.

CM Basavaraj Bommai-led government's labour reforms were widely viewed as part of the state's strategy to propel itself as a manufacturing hub. The changes to allow the women workforce to operate during the night shift was particularly seen as a potential game-changer for the growth of electronics manufacturing in the state.

In a move that appeared hastily done to ensure that the state retains its manufacturing competitiveness vis-a-vis Karnataka, the DMK government passed the Factories (Tamil Nadu Amendment) Bill, 2023, in the legislative assembly on April 21.

The amendment to the act permitted a 12-hour work schedule for industries and factory workers.

Trade union representatives pointed out that unlike Karnataka, which introduced sufficient safeguards as part of the bill, Tamil Nadu's amendment was sweeping, vague and could lead to potential misuse.