Tamil Nadu govt puts contentious Factories Bill on hold amid opposition from allies, unions

The government’s decision to put the Bill on hold comes after assurances from Chief Minister M K Stalin that his administration would take into consideration the concerns of trade unions, who argue that the legislation is anti-labour and reflective of policy reforms pushed by the BJP.

The state government’s announcement maintained that its commitment to the rights and welfare of employees is unwavering and stressed that a peaceful labour environment was vital for the growth of industries and the overall development of the state.

Tamil Nadu government officials have previously argued in defence of the Bill that if the state did not offer flexibility to industries, they may choose to move to other states like Karnataka, where similar legislation has been enacted.

Before the decision to put the Bill on hold, the government had sought to allay concerns that the new Bill would negatively impact workers’ current rights, including the eight-hour daily maximum and the 48-hour weekly maximum working hours. According to the government’s response to trade unions, the new legislation would not be mandatory. Rather, it would have served as an option available to both employees and employers. Workers would still have the right to refuse the extended shifts, and management would not be able to force them to accept the change, the government had argued.

As a final attempt to garner support for the Bill, the Tamil Nadu government had also promised to notify the list of industries to which the new options would apply. Officials highlighted differences between the proposed Tamil Nadu Bill and the one enacted in Karnataka, emphasising that the latter amended the law for all industries, and that the Tamil Nadu Bill includes specific conditions such as workplace size, the nature of the work, and proximity of workers’ residences to the factory. The government has argued that the Tamil Nadu Bill would only be applicable to select factories that apply for and fulfil all requisite conditions.

The statement that the Bill was being put on hold was issued late in the evening on Monday, minutes before Stalin’s meeting with leaders of the DMK’s political allies. The statement also sought to position the party as an ally of labourers, citing various schemes implemented for their benefit by different DMK governments in the past.