Amid protests, TN Assembly clears factories Bill for flexible working hours

Tabling the Bill on April 12, state Labour Welfare and Skill Development Minister C V Ganesan had said the decision to amend the Factories Act, 1948 was taken after representations from multiple industries and associations “to bring reforms by making a statutory provision for flexible working hours, citing the number of benefits it could bring to workers, especially women employees, the industry and the economy as a whole”.

Claiming that the Bill is aimed to promote industrial flexibility, Ganesan emphasised that there would be no change in the clauses for 8-hour work days, weekly holidays and additional wages. He said the law will not apply to all companies and factories, and will only be implemented in locations where workers desire it.

According to the “statement  of objects and reasons” presented in the Assembly, Tamil Nadu has emerged as the hub of major manufacturing companies and has the highest number of industrial workers in the country.

“Section 127 of the said Central Code [for labour] enables the state government, by notification, to provide, among others, for flexible working hours, including overtime and spread over hours inclusive of rest intervals, subject to such conditions and restrictions and for such period as deemed fit, in relation to any factory or class of factories,” it said.

“The said Central Code having not yet been brought into force by the Government of India, in the interest of workers and the industries, with a view to provide flexible working hours in factories, the state government has decided to amend the Factories Act, 1948 (Central Act 63 of 1948), in its application to this state,” it said.

While the amendment introduces the possibility of a four-day work week with 12-hour shifts, there have been fears that exemptions for certain factories could enable employers to bypass legal provisions.

Despite assurances from the government, various parties, including the MDMK, CPI(M), VCK, PMK, MMK and BJP opposed the Bill while the Congress staged a walkout from the Assembly on Friday.

DMK allies, including the CPM, raised concerns that it will have an impact on the workers and dilute the clause of 8-hour work day. BJP MLA Nainar Nagendran called for re-examination of the Bill, while VCK MLA Sinthanai Selvan suggested that a committee should scrutinise it. Despite the objections, the Bill was passed in the Assembly.

Multiple sources in the government and DMK said the move may benefit electronic manufacturers who have set up units in Tamil Nadu over the years. The state now has units of 16 top electronics manufacturers, including global giants such as Nokia, Samsung, Flex, Dell, Motorola, Salcomp, HP, and Foxconn and Pegatron, which are into assembling contracts for premium Apple phones.

The state’s vision is to elevate the electronics industry to the same level as its thriving automobile, apparel, and footwear sectors, which respectively account for 37.6%, 30.8%, and 46.4% of the country’s exports in these categories.