- Labour unrest in Noida-Greater Noida centers on wage hikes and operational risks in manufacturing sectors
- UP government announced interim wage increase after Haryana's 35% minimum wage hike to address protests
- Motherson and Maruti Suzuki face labour risks but report compliance and limited production impact
The ongoing labour unrest in the Noida-Greater Noida industrial belt has been dominating headlines recently, as the workers raise issues around wages and oeprational risks across several manufacturing-heavy sectors.
The unrest and agitation came on the back of a 35% hike in minimum wages in Haryana, prompting similar demands in Uttar Pradesh. The UP government has reacted by announcing an interim pay hike across skill categories and said a comprehensive reivision is underway under the national Labour Codes.
These protests, other than raising conversations about wage costs and workers' safety, have also led to near-term concerns for sectors with high dependence on shop-floor labour, particularly the auto components, electronics manufacturing and garments sectors.
The primary dampener of sentiment, from a market perspective, is Uttar Pradesh government's decision to issue an interim pay hike, which will see unskilled workers' minimum pay hiked from Rs 11,313 to Rs 13,690 while skilled workers could earn Rs 16,668, up from previous figure of Rs 13,940.
ALSO READ: UP Hikes Minimum Wages Across Categories After Noida Unrest
Auto And Auto Ancillary Exposure
As mentioned earlier, auto and auto component companies are running significant risks when it comes to exposure to shop-floor labour.
Some of the companies with plants in the NCR belt include Motherson, Subros, Maruti Suzuki, JBM Auto, Sona BLW and Lumax Industries.
Motherson hsa already stated that the labour issue is affecting several industries in Noida and is largely driven by misinformation around wage hikes. The company added that operations are fully compliant with all labour laws, employee safety remains the top priority, and it is working closely with industry stakeholders to restore normalcy.
Maruti Suzuki clarified it has seen “totally incorrect rumours” attempting to link unrest at other companies in the Manesar industrial belt to its own operations. The automaker said there has been no impact on industrial relations or production at Maruti Suzuki plants.
Electronics Manufacturing Under Watch
Electronics manufacturers such as Dixon Technologies, Syrma SGS and Havells also fall within the affected belt. Dixon said the Noida protest is industry-wide and triggered by misinformation. In an exchange filing, the company said its operations remain fully compliant with laws and the protest has had no material impact on its manufacturing activities.
Other Sectors In Focus
Consumer companies including Dabur, Asian Paints, Nestlé India and LT Foods, defence PSU Bharat Electronics Ltd (BEL), and garment manufacturers also have exposure to the region, though no company has yet reported a significant operational hit.
ALSO READ: Workers' Protest Over Wage Hike Turns Violent In Noida, Vehicles Torched
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