Apple's Manufacturing Plans Hit Roadblock, As Tamil Nadu Puts Workday Bill On Back Burner

The Tamil Nadu government has put on hold a bill that would have allowed a 12-hour workday in factories, which will have an effect on the manufacturing plans of companies like Apple suppliers Foxconn and Pegatron.

What Happened? Reuters reported that various labour unions, including the All India Trade Union Congress and Centre of Indian Trade Unions, opposed the bill after it was passed last week. Union representatives held talks, resulting in the bill being put on hold and the extended working hours only applying to certain government-approved factories.

Over the past few months, the state has attracted significant investments from companies such as Apple, which are looking to diversify their supply chain away from China.

The Cupertino giant which recently opened two of its first retail stores in the country amid much fanfare, lobbied for a labour reform legislation in Karnataka, in early March, that would help the company greatly improve manufacturing prospects in the country.

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Speaking to the Financial Times at the time, a Foxconn spokesperson had mentioned that being able to run production lines with two 12-hour shifts around the clock will be a big step in bringing them closer to their targets.

Meanwhile, Tamil Nadu also recently announced that Pou Chen, the world's largest branded sports footwear manufacturer, will invest $280.86 million (₹2,302 crore) to establish a manufacturing facility in Tamil Nadu.

The Taiwanese company, which makes shoes for global brands like Nike, Adidas, and Timberland, mentioned that their investment would help create 20,000 new jobs in the state over a period of 12 years.

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