Their successful lobbying for new legislation means two-shift production can take place in India, akin to the two companies’ practices in China, their primary manufacturing base. The law gives the southern state one of the most flexible working regimes in India as the country aims to become an alternative manufacturing base to China.
Karnataka’s move is an attempt to seize the opportunity created by companies that are seeking to end an over reliance on Chinese manufacturing, following months of Covid-19 disruption that has shaken global supply chains.
The state, a centre for India’s tech industry, last week passed an amendment to its application of the factories act allowing for 12-hour shifts, up from the previous limit of nine hours. It also eased rules on night-time work for women, who dominate electronics production lines in China, Taiwan and Vietnam but are under represented in India’s workforce. The legislation caps maximum working hours at 48 per week, but also expands the number of allowable overtime hours to 145 over a three-month period, from a previous 75.
The official said Karnataka had amended its labour law after “a lot of inputs” from Indian industry lobby groups and foreign companies, including Foxconn and Apple.