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This is an archive article published on May 1, 2023

Tamil Nadu withdraws Bill extending working hours, CM Stalin calls it a ‘courageous move’

In his May Day address at an event in Chennai, Chief Minister M K Stalin described the withdrawal as a “courageous move”, emphasising that the decision was taken after considering the concerns of trade unions and alliance partners.

stalin, factories billStalin made the announcement while participating in an event marking International Labour Day (May 1) at Chintadripet, Chennai
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Tamil Nadu withdraws Bill extending working hours, CM Stalin calls it a ‘courageous move’
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BOWING TO pressure from allies and labour unions, the Tamil Nadu government announced the withdrawal of the controversial Factories (Amendment) Act, 2023 on Monday. The legislation, which aimed to provide flexible working hours to employees in select factory sectors, was met with widespread opposition.

In his May Day address at an event in Chennai, Chief Minister M K Stalin described the withdrawal as a “courageous move”, emphasising that the decision was taken after considering the concerns of trade unions and alliance partners.

On April 21, the Tamil Nadu government brought in the amendment to insert a new Section 65A in the Factories Act, 1948, to enable factories to have flexible working hours. Critics alleged that the Act posed a threat to workers’ rights, with concerns that it would extend the mandatory workday from 8 hours to 12 hours. The amendment, according to government sources, was intended to benefit electronics manufacturers such as Foxconn and Pegatron, as they assemble high-end Apple iPhones, and shift their focus away from China.

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The rollback announcement came a week after Stalin declared that the Bill had been “put on hold”. The industries department clarified that the total working hours in a week would be capped at 48 and would not be changed. However, opposition groups felt that the flexible working hours provision could have detrimental effects on workers’ rights.

Explained

Paradox of political process

While it is a welcome decision for labourers, trade unions and many allies of the DMK, the Tamil Nadu government's decision to withdraw the controversial Factories (Amendment) Act, 2023 also underscores an unfortunate paradox of the policy process as these amendments were brought in after intense bureaucratic deliberations held at the highest level of government in the past several months. Had it been more thought out, a potentially avoidable process could have saved not only time but resources too.

Despite the government’s clarification that the amendment would only apply to industries like electronics and non-leather shoe-making, most of which come from Taiwan and other Asian countries, strong opposition from DMK allies and trade unions continued.

The Chief Minister noted that the government had only sought to amend the Factories Act to create more job opportunities for the state’s youth, particularly in southern and northern regions. He added that the amendment would have applied to only a few sectors and contained measures to protect employee welfare. Despite his assurance, the trade unions remained doubtful.

The DMK’s trade union, which opposed the amendments proposed by their party-led government, was praised by Stalin for demonstrating the strength of democracy within the DMK.

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Stalin also accused the BJP of withdrawing the farm Bills only after a year of massive farmer protests, while the AIADMK government suspended thousands of employees by invoking the Essential Services Maintenance Act (ESMA) during the 2001-06 government of late J Jayalalithaa.

“I have never considered making compromises an insult. I take pride in that. If bringing a law is a courageous move, withdrawing it is also a courageous move,” Stalin said. He said legislators would be informed of the decision formally.

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