Managing reform risks

Karnataka cannot relax after its bold move on labourlaw changes and should focus on their careful execution

- AK BHATTACHARYA

In a move that has gone largely unnoticed, the Karnataka legislature has approved an amendment to the state government's labour law that would allow its industries to extend working hours from the existing 9 hours to 12 hours a day, increase overtime from 75 hours in three months to 145 hours and permit women to work during night shifts.

These relaxations, however, are subject to a cap of 48 hours of work in a week and the provision of a safe and healthy work environment for women during night (from 7pm to 6 am).

The Factories (Karnataka Amendment) Bill, 2023, was passed on February 24 without a debate in the Assembly even after facing opposition from members of the Congress and Janata Dal (Secular), who staged a walkout in protest. Media reports also suggested that a member of the Bharatiya Janata Party opposed the amendments, when they were moved and passed in the Legislative Council.

Labour unions are understandably unhappy with these changes. The Centre of Indian Trade Unions has appealed to the Karnataka governor to reject the amendment Bill, and all trade unions in the state are expected to go on a protest on March 23.

Unconfirmed reports also suggest that the labour law changes would help Karnataka convince Foxconn, a Taiwanese manufacturer of Apple phones, to set up one of its factories in the state. Indeed, allowing women to work during night shifts, operation of two shifts during the day and longer working hours have been among the main demands of foreign companies before setting up manufacturing or assembling plants in India. Chinese labour laws are flexible and if Karnataka were keen to attract foreign investments and boost manufacturing, it must bring about such changes, the state's information technology minister, CN Ashwath Narayan, was reported to have indicated while introducing the amendments in the Legislative Council.