The recent 37-day workers strike at Samsung India Electronics’ Sriperumbudur plant in Tamil Nadu brought back attention to labour issues & industrial disputes. Official data indicates that the number of industrial disputes has reduced significantly in recent years coinciding with a reduced share of workers who are part of unions.
After a 37-day strike, workers at Samsung India Electronics’ Sriperumbudur plant in Tamil Nadu returned to work on 16 October 2024, drawing attention to labour conditions at one of Samsung’s primary manufacturing facilities in India. Situated near Chennai, this plant is one of only two in the country, employing about 1800 workers to produce home appliances—a segment that generates nearly a third of Samsung’s $12 billion revenue in India. The workers’ demands centred on wage increases, shorter working hours, and better working conditions.
A key issue in the dispute was the workers’ push for Samsung to formally recognize the Samsung India Workers’ Union (SIWU), which, with support from the Centre of Indian Trade Unions (CITU), claims to represent more than 80% of the plant’s employees. Samsung, however, has declined to acknowledge SIWU, choosing instead to engage with an internal “workmen’s committee”, which workers allege is controlled by the company. During recent conciliation talks, both management and union representatives participated and reached several agreements to address worker concerns.
In light of this situation, we explore statistics on industrial disputes in India, examining data related to wages, working conditions, and other pertinent factors. This story draws upon two key sources of information:
- Labour Bureau’s reports on Statistics on “Industrial Disputes, Closures, Retrenchments, and Lay-offs in India.”. These reports are based on voluntary submissions from State and Union Territory Labour Departments, as well as Regional Labour Commissioners (Central) each month.
- Business Responsibility and Sustainability Reports (BRSR), as compiled by Dataful.
Find Comprehensive Datasets on Business Responsibility and Sustainability Reports (BRSR) on Dataful
Industrial Disputes at less than 100 each year since 2018
Industrial disputes typically lead to temporary work stoppages and arise from disagreements over employment conditions or unmet demands. These stoppages can take the form of either a “strike”—an action where employees collectively stop working to express grievances or push for demands—or a “lockout,” in which employers halt operations to assert their position on labour issues. Strikes and lockouts often occur when management and labour unions are unable to reach agreements, reflecting the inherent tension between their economic interests.
According to Section 2(q) of the Industrial Disputes Act, 1947, a “strike” is defined as a group of workers, acting together, stopping or refusing to continue their work. A “lockout,” as per Section 2(l), involves the temporary closure of a workplace or the suspension of operations, wherein an employer declines to retain any number of employees.
A closer look at the data reveals a significant decline in industrial disputes, reaching a 17-year low in 2023 with only 30 disputes reported by September 2023. This marks a stark contrast to 2006, which saw the highest number of disputes at 430, followed by 421 in 2008 and 389 in 2007. From 2006 to 2014, the average number of industrial disputes was 354, but this figure dropped dramatically to just 76 between 2015 and 2023. In fact, the total number of industrial disputes has been less than 100 each year since 2018.
Additionally, analysing the period from 2008 to 2018, when comprehensive statistics were available, it is evident that around 85% of disputes occurred in the private sector. Notably, “wages and allowances” emerged as the primary cause in roughly one-quarter of these disputes, highlighting a persistent issue in employer-employee relations.
Man-days lost fell from 203 Lakhs to 3 Lakhs between 2006 and 2023
Man-days lost serve as a key indicator of industrial unrest and its impact on production. This metric is calculated by summing the actual absences directly or indirectly resulting from work stoppages during each shift of a potential working day, excluding weekly off days and other scheduled holidays when establishments would have been closed regardless of any work stoppages.
In 2023 (till September), the total man-days lost due to strikes and lockouts across both public and private sectors amounted to 3.4 lakh—a remarkable decline from 203 lakh in 2006. The peak of industrial disruption occurred in 2007, with 271 lakh man-days lost. From 2006 to 2014, the average annual loss was 174 lakh man-days, but this figure drastically decreased to 30.3 lakh man-days between 2015 and 2023. Notably, both 2022 and 2023 recorded exceptionally low levels of man-days lost.
Most Non-Permanent Workers (Approx. 44%) are paid just minimum wages in India
The BRSR framework urges companies to deepen their corporate purpose by prioritizing environmental, social, and governance (ESG) aspects to enhance business impact. This framework also highlights the value of employee training and awareness programs, requiring companies to disclose measures related to health and safety, anti-corruption efforts, and the promotion of human rights.
Given that roughly a quarter of all disputes centre on wages and allowances, we examined data on the distribution of employees and workers earning at or above minimum wage. It is evident that a significant number of non-permanent employees receive only the bare minimum wage. In fact, within each employment category, the majority of those in non-permanent roles are paid at just the minimum wage level. More than 95% of permanent employees earn above the minimum wage, while only about 78% of non-permanent employees do the same. Similarly, around 80% of permanent workers receive more than the minimum wage, whereas only nearly 56% of non-permanent workers earn above that threshold.
Unions on the Decline: Workforce Representation at its lowest in Four Years
Unions are essential platforms that amplify employees’ collective voice, transforming individual strength into unified bargaining power and action. Strong unions set standards for wages and benefits, benefiting both unionized and non-unionized workers. They also play a crucial role in fostering equality, particularly by supporting underpaid employees. Unionized workplaces typically see enhanced safety protocols, better employee retention, and increased productivity—all contributing to healthier, more resilient businesses. Moreover, the right to unionize and negotiate collectively is a fundamental worker’s right. Even at the Samsung plant, the core demand of protesting workers was precisely this: formal recognition of their union.
Data from the BRSR on employee and worker union membership highlights a concerning trend. Among permanent employees, the proportion belonging to associations or unions has dropped from 31% in 2020-21 to just 17% in 2023-24. Likewise, union membership among permanent workers fell significantly, from 82% to 35% over the same period. This decline may stem from several factors, notably structural shifts in the nature of work and recent legislative changes, both of which have likely played a prominent role in this reduction.
