States set to ease labour laws, lure multinationals

States, including Tamil Nadu and Uttar Pradesh, are likely to amend labour policies by allowing flexibilities such as 12-hour shifts and night-time work shifts for women, the official said

- Gulveen Aulakh

Large global manufacturers have long nudged India’s state governments to tweak archaic labour laws that drag down productivity. Now, ambitious plans by multinationals such as Apple Inc. to scale up their Indian operations may prompt several states to amend such laws, a government official said, following recent relaxations by Karnataka in this respect.

States, including Tamil Nadu and Uttar Pradesh, are likely to amend labour policies by allowing flexibilities such as 12-hour shifts and night-time work shifts for women, the official said on the condition of anonymity.

“Labour laws have been changed in Karnataka; some five to six other states like Tamil Nadu and Uttar Pradesh will also be making similar changes to their laws. This will facilitate companies like Apple," the official cited above said.

Last month, Karnataka amended its labour laws governing factories, allowing manufacturers to increase shift hours to 12 hours from the present nine. Women have been allowed to work night shifts; overtime hours have been nearly doubled to 145 over a three-month period, while maximum working hours have been kept at 48 a week.

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