Will India’s Manufacturing Resurgence Spark a Rise in Labour Disharmony?

The recent strike at Samsung Electronics’ facility in India has spotlighted the country’s growing labour movement, which could impact its industrial growth. India's electronics production has doubled recently, with significant investments in Apple iPhone production and semiconductor facilities. The Lowy Institute has highlighted the need for India’s industrial policies to address labour issues in order to maintain competitiveness.

While small in scale, recent protests from IT workers in Bangalore challenge the conventional belief that tech workers are unlikely to unionize, signalling a broader movement for fair treatment across industries. The push for unionization is driven by diminishing job security, the rise of contract-based work, and demand for greater work-life balance.

A nationwide banking sector strike was recently averted, following intervention from the Chief Labour Commission. The primary demand from the United Forum of Bank Unions (the umbrella organisation of nine unions) is a 5-day work week – which the union claims would enhance both work-life balance and the progression towards improved digitalisation of the banking industry.

With suggestions that the IT job market could grow by 20% in 2025, and rumours of large resourcing shifts from US headquartered IT companies, employers are under increasing pressure to manage labour relations more effectively and minimise disruption.

Key thoughts for employers