What's Happening?
India's electronics manufacturing sector is optimistic about the implementation of four new labour codes, which aim to improve wages, industrial relations, social security, and working conditions. The
India Electronics & Semiconductor Association (IESA) believes these codes will enhance employee trust, reduce attrition, and increase women's participation in the workforce. The codes include provisions for fixed-term employment, faster dispute resolution, and improved health and safety standards. They also recognize gig and platform workers, offering portability of benefits, which aligns with India's digital economy.
Why It's Important?
The new labour codes are expected to significantly impact the electronics industry by fostering a more inclusive and equitable work environment. By encouraging women's participation and providing better social protections, the industry can tap into a broader talent pool, enhancing productivity and innovation. These changes are crucial for India's ambition to become a global manufacturing powerhouse, as they support sustainable job creation and competitiveness. The codes also address the need for a balanced, worker-centric ecosystem, which is vital for long-term economic growth.
What's Next?
As the industry adapts to the new labour codes, companies may face challenges such as higher wage and compliance costs. There will be an adjustment period for small and medium enterprises to adopt the new norms, requiring stronger HR processes and documentation practices. The government and industry bodies will likely continue to monitor the implementation and address any issues that arise, ensuring the codes achieve their intended goals.
