GTRI Urges Indian Government to Formulate Clear Labour Laws to Mitigate Industrial Strikes

New Delhi, Oct 7 (KNN) In a recent statement, the Global Trade Research Initiative (GTRI) emphasised the urgent need for the Indian government to establish clear laws and standard operating procedures aimed at protecting workers while also safeguarding the interests of companies.

This dual focus is essential for fostering a more stable industrial environment, as the think tank warns that ongoing industrial strikes pose a significant threat to both workers and economic stability.

GTRI founder Ajay Srivastava pointed out that industrial strikes have historically resulted in factory closures and job losses across India. 

The ongoing strike by over 1,000 workers at Samsung's Sriperumbudur factory in Tamil Nadu, which began on September 9, serves as a stark reminder of this persistent issue. “This is not an isolated event,” Srivastava noted, highlighting the need for systemic change.

To address this crisis, GTRI proposed seven strategic steps, which include the enforcement of existing labour laws, the establishment of mediation systems, and fostering union-management dialogue. 

They also called for a robust legal framework for labour compliance, collaboration between central and state governments, and intelligence mechanisms to detect potential disruptions early. 

According to GTRI, the government must ensure that written contracts, severance pay, and regulated working hours are upheld to provide a safety net for workers. This enforcement would help minimise grievances that often lead to strikes.

Creating effective mediation and arbitration systems is crucial for resolving disputes swiftly, preventing escalation into larger strikes. GTRI suggested that these systems could be managed by independent bodies to guarantee fairness. 

While unions play a vital role in advocating for wages and worker welfare, GTRI emphasised the need to prevent them from obstructing company operations.

A balanced approach is essential, GTRI asserted, to maintain industrial progress while protecting worker rights. 

Establishing a clear legal framework delineating manufacturers' obligations regarding labour compliance would contribute to a more predictable business environment, ultimately benefiting both workers and businesses.

Historically, India has been plagued by strikes in key industrial regions such as Maharashtra, Gujarat, and Punjab since the 1970s. 

Srivastava pointed out that while the textile industry flourished during the 1970s and 1980s, prolonged labour strikes have turned major cities into what he termed “graveyards of the textiles industry.”

Drawing a comparison with China, he noted that the All-China Federation of Trade Unions works closely with the government to address worker grievances, thus averting widespread unrest. 

In contrast, Indian trade unions are often politicized, leading to strikes motivated by political agendas rather than genuine worker grievances.

By implementing GTRI’s recommendations, India can significantly reduce the frequency and impact of labour strikes, creating a more stable industrial landscape that benefits all stakeholders involved.

(KNN Bureau)