UP And Tamil Nadu Among States Likely To Amend Labour Laws To Attract Apple And Other Multinationals: Report

Swarajya StaffMonday, April 24, 2023 10:01 am IST
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Several states in India are reportedly considering amendments to their labour laws to attract global manufacturers.

Global manufacturers have for a long time urged India's state governments to modify outdated labour laws that harm productivity.

With large multinational firms like Apple planning to expand their operations in India, several states may amend their labour laws, Livemint reported citing a government official

This comes after Karnataka's recent amendment of labour laws.

Tamil Nadu and Uttar Pradesh are among the states that may modify labour policies to enable 12-hour shift and night shifts for women.

Karnataka has changed its labour laws, and similar changes will be made by five to six other states including Uttar Pradesh and Tamil Nadu, according to the official.

The amendments will benefit companies like Apple, the official added.

Karnataka had last month amended it labour laws governing factories.

The new labour law amendment in Karnataka now permits manufacturers to extend their shift hours from nine to 12 hours.

Women are now authorised to work overnight, and overtime hours have increased nearly two-fold to 145 over a three-month period. The maximum weekly working hours, however, have been kept at 48 hours per week.

The official added that central intervention is not required since states are taking action independently.

Earlier in March, Financial Times reported that Apple and its production partner Taiwan's Foxconn were among the firms that urged changes in legal frameworks to boost productivity and efficiency in operations, matching the levels seen in China's production centres.

Contract manufacturers assembling iPhones for Apple, such as Foxconn, Pegatron, and Wistron, are pushing for flexible labour laws.

These manufacturers have their production facilities in in different regions: Foxconn is located at Sriperumbudur in Andhra Pradesh, Pegatron in Kancheepuram district in Tamil Nadu, and Wistron facility is located near Bengaluru in Karnataka.

During his visit to India last week, Apple's CEO, Tim Cook, has reportedly reaffirmed the company's commitment to invest in the country and expand its manufacturing operations in the nation.

Apple's manufacturing expansion strategy might include opening more units in states that offer conducive environment and supportive policies, including that of labour and investment.

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