The strike by over 1,000 workers at Samsung's Sriperumbudur factory in Tamil Nadu since 9 September is not an isolated event. Industrial strikes have led to factory closures and job losses in India for decades. Since the 1970s, the country has witnessed hundreds of strikes in industrial hotspots such as Maharashtra, Gujarat, Haryana, West Bengal, Kanpur and Punjab.
India's textile industry thrived in the 1970s and 1980s, competing globally with China. However, prolonged labour disputes in cities like Kanpur and Mumbai significantly impacted the industry's growth. These disputes, often sparked by concerns over low wages and poor working conditions, aimed to safeguard workers' interests. While they intended to protect workers, the strikes ultimately had unintended consequences that harmed the very individuals they sought to help.
For instance, the textile strikes and mill closures in Kanpur during the 1970s and 1980s forced many workers into precarious jobs such as rickshaw pulling or construction work. At that time, the textile industry was comparable to China’s, but while China surged ahead to dominate global markets, India's sector declined.
According to a report by Global Trade Research Initiative (GTRI), China’s labour environment differs significantly from India's. China’s single trade union, the All-China Federation of Trade Unions (ACFTU), works closely with the government to manage worker grievances, preventing widespread unrest. In contrast, India's trade unions are often linked to political parties, leading to strikes driven by political motives.
Strategic Measures To Prevent Strikes
A report prepared by Ajay Srivastava, Founder, Global Trade Research Initiative (GTRI) stated that to reduce industrial strikes, India must prioritise protecting workers' rights while maintaining industrial stability. The report added that the government must enforce labour laws ensuring written contracts, severance pay, and regulated working hours for workers. This enforcement would provide a safety net for workers and reduce grievances that often lead to strikes.
The report added, “Creating efficient mediation and arbitration systems would allow disputes to be resolved quickly, preventing them from escalating into large-scale strikes. These systems could be managed by independent bodies to ensure fairness. Unions should be involved in discussions on wages and worker welfare but should not interfere with individual company operations. A balanced approach would prevent unions from stalling industrial progress while ensuring worker rights are protected.”
It suggested that a clear legal framework outlining manufacturers' obligations for labour compliance and worker welfare would create a more predictable business environment. Companies complying with these laws should expect protection from unnecessary labour disruptions. A collaborative approach between central and state governments is needed to proactively address labour disputes in large firms. This cooperation would prevent strikes from spreading across regions and industries.
“Industrial espionage and disruptions orchestrated by external actors are a reality in today's globalized economy. Setting up intelligence units to detect these disruptions would help prevent external actors from exacerbating labour unrest. Bipartisan support from all political parties is crucial to ensure labour law reforms are not blocked by political agendas. Political affiliations should not hinder efforts to stabilise labour relations, particularly in the organised sector,” it stated.
Major Strikes In India's Industrial History
Some of the most notable labour strikes have severely impacted critical industries and regions, leaving a lasting economic imprint.
Kanpur once hailed as the Manchester of the East witnessed a series of strikes that contributed to the collapse of its once-thriving textile, leather, and defence industries. The 1977-78 textile mill strikes, lasting for months, led to widespread unemployment and marked the beginning of Kanpur's industrial decline. Later strikes, such as the 1981 Elgin Mill Strike and the 1992 Swadeshi Cotton Mill Strike, ultimately led to the city's economic downturn.
In West Bengal, labour activism has a long history, with the 1977 jute mill strikes in Kolkata standing out. These strikes accelerated the decline of the city's jute industry, once a global leader. More recently, the 2008 Tata Motors Singur protest, opposing land acquisition for a proposed Tata Nano plant, forced the company to relocate to Gujarat, reflecting the adverse impact of labour unrest on industrial projects.
Tamil Nadu, another critical industrial hub, has also seen labour strikes disrupt industries. Strikes in Coimbatore and Tiruppur during the 1980s and 1990s disrupted textile production. More recently, strikes at Hyundai in 2007-2008 and Foxconn in 2009 have halted car and electronics manufacturing, showing the persistent influence of labour disputes in the state's industrial landscape.
Gujarat, with its diverse industrial base, has similarly experienced labour unrest. The 1974 textile workers' strike in Ahmedabad led to mass layoffs and the closure of several mills, while the 2008 General Motors strike in Halol halted car production for weeks. In 2015, strikes by Maruti-Suzuki suppliers disrupted the automaker’s supply chain, highlighting the continuing influence of unions in Gujarat's industrial sectors.
In Maharashtra, the 1982-1983 Bombay Textile Strike, led by union leader Datta Samant, stands out. Lasting 18 months, the strike crippled the city’s textile industry, resulting in mass unemployment as numerous mills closed down. This event marked the collapse of Mumbai's once-vibrant textile sector. A decade later, the Hindustan Lever Strike in Sewri, lasting four years, saw workers protest modernization plans that they feared would lead to job losses. The strike highlighted the tension between industrial progress and employment security.
Haryana's Maruti Suzuki Workers' Union strike at the Manesar plant in 2011-2012 drew national attention due to its violent outcome, including the death of a manager. The strike halted production for weeks, reflecting the fragile state of labour relations in India's auto industry. The incident underscored the need for better conflict resolution mechanisms between workers and management in the country's growing automotive sector.
Kerala, known for its robust labour movements, experienced significant strikes that disrupted key industries. The 1984 strike at the Fertilisers and Chemicals Travancore (FACT) plant lasted for weeks, disrupting fertilizer production as workers protested over job security and wages. Similarly, the 1994 strike at Hindustan Newsprint in Velloor halted paper production, affecting the local publishing industry. These strikes pointed to the challenges facing Kerala's traditional industries in adapting to modernization.
Punjab, home to major textile and bicycle manufacturing industries, has also faced significant labour disruptions. Strikes in Ludhiana’s textile sector during the 1980s and bicycle manufacturing strikes at Hero Cycles and Avon Cycles in 1998 and 2010 disrupted production, demonstrating the adverse effects of labour unrest on industrial growth and modernisation efforts.
