The Karnataka BJP government amended the Factories Act in 2023 claiming to boost economic activity and employment, but a closer look reveals a troubling reality, these changes come at the cost of workers’ rights and well-being. Under the guise of “flexibility” and “economic growth,” the amendments allow factories to extend daily working hours from 9 to 12 (up to 48 hours a week), reduce mandatory breaks, and increase overtime limits all without ensuring fair compensation or better working conditions. While the government says these changes will attract investment and create jobs, there is a clear bias toward corporate interests, leaving workers vulnerable to exploitation. Despite Congress coming to power, the amendments remain.
Factories can now demand 12-hour shifts, including overtime, while capping weekly hours at 48. However, overtime pay (double the wage rate) will now apply only beyond a government-set threshold. Companies can now legally stretch work hours without compensating workers fairly. Additionally, overtime limits per quarter have been raised, enabling factories to force excessive workloads during ‘peak seasons’ without hiring more staff. The law allows women to work night shifts with “written consent,” touting it as progress. But the power imbalance between employers and workers, especially women in low-wage jobs makes ‘consent’ questionable. The amendment ignores the need for better security, transport, or childcare support, making this less about empowerment and more about cheap labour.
The government argues that these changes will make Karnataka more business-friendly, attracting investment and boost employment. But history shows that lax labour laws do not create jobs; instead, it encourages companies to give lower wages and extract more working hours. States that have implemented similar reforms, such as Gujarat and Uttar Pradesh, have seen stagnant wage growth and worsening working conditions, with no significant rise in employment.
If the goal were truly economic growth, the government would focus on upskilling workers, improving infrastructure, and enforcing fair wages, not squeezing more hours out of an already overburdened workforce. Instead, this amendment signals that Karnataka is willing to sacrifice workers’ health and rights for short-term corporate gains.
