'Where is the Dissent by Top Honchos Now?' It's Labour Unions vs Siddaramaiah Sarkar as Karnataka Mulls 14-Hour Workday

The Karnataka government has said pressure from the IT industry to introduce a 14-hour workday in the sector is currently up for debate and deliberation. The draft Bill — which comes just days after the Siddaramaiah-led Congress government was forced to backtrack on a Bill that enforced reservation for locals — aims to increase working hours to 12-14. The move has drawn widespread criticism, especially from unions.

The proposal, which will be up for discussion in the cabinet, has not come from the government but from IT honchos, according to Santosh Lad, Karnataka’s minister for labour, who spoke to News18.

Countries like Mexico, Malaysia, and China have legally permitted working up to 14 hours a day, including overtime on certain days, and the move in Karnataka is being considered in this context.

“Since it is a request coming from the industry, we need to look at it and discuss. The draft Bill is with us, and the labour department will be evaluating it. I expect that all heads of industries will discuss this since it is now an open demand," Lad told News18.

The Karnataka State IT/ITeS Employees Union (KITU) has called for a state-wide protest on August 3 in front of the labour department to oppose the move, they told News18.

“The amendment will allow companies to implement a two-shift system instead of the current three-shift system, which will result in one-third of the workforce losing their employment," said Suhas Adiga, the general secretary of the union.

“We will be holding gate meetings and street campaign protests across Bengaluru under the banner of KITU to put a stop to this draconian Bill," said a spokesperson of KITU.

The draft Bill, which KITU has objected to, proposes changes to the ‘Karnataka Shops and Commercial Establishments (Amendments) Bill, 2024’. This will permit extended working hours in certain sectors under specified conditions. To protect employees’ interests, overtime will be capped at 125 hours over three months, ensuring workers do not work more than an additional two hours per day. The previous schedule allowed for four hours of work followed by 1 hour of rest. The new proposal extends the work period to five hours. This extension is voluntary and will not apply to all companies, explained a government source working closely with the labour department.

According to insiders in the Siddaramaiah government, the proposal has come from Global Capability Centers (GCCs), research and development companies, and other manufacturing units.

“When we spoke about reservation for locals to ensure that local talent is well utilised and given the best opportunity in their own land, IT leaders criticised us and called for a rollback. We feel this move, where the IT industry is seeking such high working hours, is unfair. Where is their dissenting voice now?" asked a senior minister from the government.

NASSCOM, the IT industry body, clarified in a recent statement after the draft Bill was circulated that the IT industry had sought flexible hours, not a 14-hour workday limit or a 70-hour workweek. Ashish Aggarwal, vice-president & head of public policy at NASSCOM, issued their viewpoint.

“As NASSCOM, we have not requested a 14-hour workday limit or a 70-hour workweek. We have not seen the copy of the Bill in Karnataka, so we cannot comment on it. We fully support the 48-hour workweek, which is the standard across the country. All we have asked of the states and the central government is to consider some flexibility within this 48-hour limit. This would help companies with a pan-India presence to standardise their operations. In Karnataka, we had a similar discussion with the IT department a few months ago. We did not, however, have a meeting with the labour department on this topic," he said in a statement.

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“As NASSCOM, we have not requested a 14-hour workday limit or a 70-hour workweek. We have not seen the copy of the Bill in Karnataka, so we cannot comment on it. We fully support the 48-hour workweek, which is the standard across the country. All we have asked of the states and the central government is to consider some flexibility within this 48-hour limit. This would help companies with a pan-India presence to standardise their operations. In Karnataka, we had a similar discussion with the IT department a few months ago. We did not, however, have a meeting with the labour department on this topic," he said in a statement.

Stay informed with our comprehensive coverage of Union Budget 2024. Get the latest on new income tax slab rates for AY 2024-25 in Income Tax Slabs Budget 2024 LIVE Updates . Track the impact of Budget 2024 on the stock market in Stock Market Budget Day 2024 LIVE Updates.