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TamilNadu Allows 12-Hour Shift To Woo Foreign Investors

Published: April 24, 2023
Author: DIGITAL MEDIA EXECUTIVE

The assembly on Friday passed a Bill permitting 12-hour shifts as opposed to the previous eight in an effort to entice international firms to locate industrial facilities in Tamil Nadu.

Sectors like information technology, electronics, textile, and non-leather footwear are anticipated to benefit from the transition. Contractors for Apple like Foxconn, Pegatron, and Wistron may benefit from this as well. The global majors moved to India as part of their aim to rely less on Chinese production. According to reports, Apple planned to shift at least a quarter of its production to India by 2025.

The Factories Amendment Bill 2023 was approved by the Tamil Nadu legislature on Friday despite walkouts by some of the DMK’s partners, including the Left parties. Apparently, media According to reports, the Act calls for a 12-hour workday, four days of labour, and three days off every week.

When the workplaces (Karnataka Amendment) Bill 2023 was passed on February 24 without a debate and the opposition withdrew in protest, Karnataka became the first state to permit 12-hour shifts in workplaces and night shifts for women. After then, the biggest producer of electronics in the world, Foxconn, which is well known for producing Apple’s iPhones, had a project in the state that required an investment of approximately 8,000 crore.

Thangam Thennarasu, the Minister of Industries for Tamil Nadu, stated that the law, which targets foreign corporations, will be enforced in a way that ensures no harm is done to workers. “Those who work in the electronics industry are likely to be subject to the 12-hour work Bill, manufacturing of non-leather footwear and the software industry,” Thennarasu remarked. The legal requirement to labour 48 hours per week is upheld. After completing four days of work, the legislation gives the employee the option of receiving extra pay if they choose to work the fifth day.

“The flexible working hours, which include overtime and spread-over hours and encompass 13 labour laws, will contribute to the improvement of safety, health, and working conditions, in addition to greater pay for workers in the state. According to A Sakthivel, president of the Federation of Indian Export Organisations (FIEO), this programme will contribute to the creation of numerous job possibilities.

“This reform will bring in more investment to the state and aid the export sector in problems with compliances in important markets. The need for flexible hours was regularly voiced by workers as It will enable them to receive higher compensation, Sakthivel continued.

The textile industry also praised the Bill, saying that it will help the business during busy times. Since buyers are adamant about abiding by the law, the flexible laws will assist in ensuring compliance on the part of foreign buyers. According to K M Subramanian, president of the Tiruppur Exporters’ Association, overtime is essential necessary during peak times to complete the shipment on time and meet the delivery schedule.

Working on it

The non-leather footwear industry, the electronics industry, and the software industry are likely to be affected by the bill.

After completing four days of work, the legislation gives the employee the option of receiving extra pay if they choose to work the fifth day. In the Bill passed amidst walkouts by several of the DMK government’s partners.

 

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